Reporte de Ilene (3 Dic) Ella hablará en Corte el lunes o martes
Hey guys...back from court!
Can you even believe how much the witnesses today sounded like they had all just agreed to pull numbers out of thin air to plug into a settlement?
Embarassing for the witnesses and for the Debtors, IMO.
Today, if you haven't heard the cross examinations, Jim Stoll was brilliant, as was Arthur Steinberg. Justin was prepared and calm, as always, but these two guys were tearing it up with their rapid fire questioning and off the cuff comments. It seems the mood in the court has changed, although in speaking with Justin today at the lunch break (I passed along the comments from last night to him..."job well done", etc), the mood in the courtroom and our daily triumphs do not necessarily portend the future of the case.
If anyone is thinking about coming in on Monday, we are moving to the smaller courtroom, which means seating is very limited and we need to be there early. Not sure what they will do about overflow, but nothing beats actually being in the courtroom with all the players.
If I had to guess the temp in the courtroom right now...I would tell you the only people who still believe there's not enough money for equity at all, right down to the U's level, would be the Debtors/WMI and the lawyers who represent them.
First of all, there are no conclusive valuations that have been given or justified. Secondly, every path to those valuations is blocked with "attorney client privilege and work product". The very thing that Judge Mary will have to allow if anyone is to believe the valuations. By most of their own admissions, not one of the witnesses thus far can justify the numbers.
Fairness and reasonablness is a test of sorts...it comes up with each witness...how can they say with a straight face (without valuations) that any settlement is fair and reasonable.
Then, look at what we learned today:
1) There are close to 19 B in NOLs between all the parts of the company.
2) There is no value placed on the intellectual property.
3) Pension Plan is overfunded at least 39 M, possibly more, but no way to know.
4) The valuation model on the Visa shares is funky.
5) JPM/WMI seems to have in numerous cases, picked off the asset and left the liability to the estate.
6) All of the BOD in the reorg. company are hedge funds with ownership interests.
Ilene