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Washington Mutual demanda a la FDIC por 17 billones US$ + daños

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Washington Mutual demanda a la FDIC por 17 billones US$ + daños
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Washington Mutual demanda a la FDIC por 17 billones US$ + daños
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#22705

Q&A probablemente para el Lunes...tras el fin de periodo de Compra para tener derecho al POR ( 6enero)

Mr. Sargent,

Will the EC be putting out an additional Q & A for the benefit of the shareholders?

I am concerned about the lockup period of the shares and if they will be tradable after confirmation. Also, is the NewCo looking to be traded on an exchange and how long is the application period?

Thank you for your response.

Sincerely,

XXXXXX

Response:

Hi, thanks for the message. Yes, we are preparing the Q&A. These things always take longer than I hope and expect, and I know there are many shareholders eager for information, but I believe it will be available within the next few days. Our current plan is to file it with the court as a supplement to our letter to shareholders in support of the plan. It will contain a discussion of the restrictions on trading the shares that I hope will answer your questions. I believe proposed articles and bylaws of the reorganized debtor will be filed at some point before confirmation and those documents too may provide you with the information you are looking for.

Best,

Edgar

#22706

Bopfan sobre TPS

As I wrote in another topic today, the EC's settlement agreement provides that AFTER confirmation the EC will drop its appeal because releasing the appeal is part of the consideration for getting whatever scraps JPM gives equity.

Since the appeal won't be abandoned until POR7 is confirmed, the appeal is alive today and if an appellate court consolidates it with TPS' appeal the EC has every right to prosecute that appeal notwithstanding the settlement agreement.

If the EC wanted to resolve shareholder doubts about its commitment to abandoning the appeal as a key element of settling the case it could have abandoned it yesterday in addition to filing the one page joinder. It didn’t.

The EC is sitting back and nervously watching to see if TPS succeeds in getting an appellate court to stay confirmation. If that happens the EC will have no choice but to prosecute its appeal, come what may. If it succeeds JPM can fight on (unless the appeal has been decided by the Third Circuit, in which case it might try to go to the Supreme Court, but it would be a lot easier to give up the tax refunds) or settle by putting cash into the waterfall.

I don't know about the rest of you, but living to fight JPM for the tax refunds and to jettison the TPS sounds good to me. We are no different position today than we were three days ago when I proposed the Sleet letter except that we now know the EC was willing to file a one-page joinder with no points and authorities and no argument. Once again: it can still go one better to impress JPM by withdrawing the appeal immediately, thereby removing any possibility that it can get sucked into TPS appellate machinations.

When TPS goes before Judge Sleet to argue for the stay and expedited review, I wonder whether the EC will be sitting there in Judge Sleet’s courtroom. It will be very interesting to see if Brian Rosen can bully the EC into appearing and speaking against the court expediting the TPS appeal. If the EC is there and its appeal is still pending TPS will certainly ask the EC why it hasn’t already withdrawn its appeal.

Don’t kid yourselves: whatever deal the EC has brokered, shareholders’ circumstances can be improved by the removal of TPS and obtaining the tax refunds. TPS wants to be divorced from WMI equity as badly as WMI equity wants it gone. TPS does not want to share with common, and does not want a portion of Newco even without common if it can get paid off by JPM. Anything we can do to get TPS out of our lives benefits us. That was the theory behind the Sleet letter and nothing I read yesterday changes that view.

#22707

EC filings + TPS moción to Stay

Yesterday’s EC pleadings were very interesting. Its one-page joinder to WMI’s opposition to the TPS motion for stay pending appeal says volumes. Containing no points and authorities and no arguments it provided the most nominal support for WMI’s opposition, which is a protective measure if it should have to revive its own appeal later before Judge Sleet or the Third Circuit.

Make no mistake: the EC understands that the TPS mean to get Judge Sleet or the Third Circuit to stay confirmation and adjudicate the appeals. If they succeed, the court will look to consolidate the appeals and EC will be forced by shareholders to argue its appeal of the fair and reasonable ruling. This action would NOT violate the settlement because it provides for the appeal to be abandoned AFTER confirmation. Well, since the plan will be stayed, advancing the appeal – even to a ruling – will in no way breach the settlement. By saying nothing in its joinder the EC won’t have to eat words later.

We have to keep in mind that the EC understands perfectly well that the TPS are well-funded and will persist regardless of what anyone else in the case is doing. JPM knows this, too, but it has reached the limits of its power over WMI and the EC to stop TPS. There’s simply nothing WMI can do to stop the TPS. JPM, on the other hand, could stop the TPS by offering to assume them. This would cost JPM no more than $300MM per year in interest, which is far less than the $500MM per year or so it gets from the $10B in mortgages to which the securities were once linked. (If TPS accepted, it would drop its appeal and that would free Judge Walrath to vacate her opinion regarding the TPS securities.) JPM does not want to do this, however, preferring to fight and risk the reversal of the TPS decision (which could cost it the $10B in mortgages or their equivalent), AND the F and R decision, which would certainly be decided simultaneously. Both cases have Stern connections, and the Third Circuit would probably love to adjudicate them. By offering to assume the TPS JPM would take away their incentive to litigate as the assumption of the securities would be a risk-free proposition for TPS, for value that could be sold on the open market for $4B face. It speaks to JPM’s rapacity that it is willing to risk losing $10B by fighting an appeal or, worse, having the F and R decision reversed as then it would be exposed to much more liability.

My guess is JPM is in wait and see mode. If TPS succeed in getting the stay, then they’ll probably re-evaluate their options, and a settlement with TPS benefits WMI’s ‘real’ equity, Ps, Ks, and Qs.

The EC’s other pleading in response to TPS’ move the re-classify itself, was a bombshell. By stating unequivocally that the court can reduce commons share from 28.5% to 0%, the EC all but admits that it has abandoned common to the court’s mercy. Of course, that it had done so was obvious in the plan itself (and, frankly, I was shocked common didn’t explode when the plan was released), but any pretense of support for commons ended with that filing.

Next week the fun begins. TPS’ motion for stay will be denied and it will march to Judge Sleet, who will have received shareholder letters and JPM will come out with all its firepower to defeat TPS’ petition. If TPS doesn’t succeed there, it will move to the Third Circuit. It is fighting for at least $4B and at most $10B, and has deep pockets for litigation. We’re along for the ride whether the EC publicly supports TPS or not, and stand to gain big if TPS succeeds.

#22708

Re: EC filings + TPS moción to Stay

Han dejado fuera del POR a TPS entre otras cosas porque no hay dinero suficiente en la finca, con toda la intencion, saben que continuará litigando. FDIC y JPM consiguen su objetivo de eternizar el proceso con estas tácticas de subterfugio con lo que obtienen mas tiempo. Mientras tanto los gastos judiciales socaban la caja dejando cada vez menos dinero para repartir entre los actores que estan al final de la cola. Los debtors continuan tranquilos esperando su recompensa. Una verguenza de proceso que solo alimenta a los actores jurídicos y prorroga el objetivo inicial de JPM de demorar el proceso en la eternidad. Simpson deja de bombear informacion falsa para seguir dando esperanzas a la equidad y a la ronda de pillados que con tus contribuciones informativas has conseguido que se produzca en los 2 últimos años.

#22709

Re: EC filings + TPS moción to Stay

nueva subida de H

#22710

Re: EC filings + TPS moción to Stay

Te dije que compraras H´s, seran las triunfadoras. Santinfotet me hizo caso y ya esta en positivo. Te falta juego de cintura Simpson para pasar de unas acciones a otras en los momentos idóneos.

#22711

Re: EC filings + TPS moción to Stay

Llámame romantico... las Preferentes aun no han dicho la ultima palabra.

Los próximos 11 y 19 enero todo se aclarará un poco más.
TPS es el elefante en la Sala ahora mismo.

Este caso por parte de los Bufetes Susman... me recuerda a las grandes partidas de ajedrez entre Karpov y Kasparov que hicieron época. Esperemos que al final de la travesía haya premio si no para todos al menos para algunos.

#22712

Re: EC filings + TPS moción to Stay

TPS mira por si mismo, no para la equidad. Su objetivo es tumbar el POR de nuevo, probablemente lo consiga, han demostrado hasta ahora ir a por todas y no renunciar a su dinero.Las preferentes no se moveran demasiado del entorno actual dado el acuerdo poco sustancioso para la equidad. Susman y MW deberian aprender de TPS o la corrupcion esta a la orden del dia en este caso.