http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=WMIH:QBB
Mientras nos preparamos para pasar la fecha del 19 de marzo que habilita los NOL´s.
Próximo hito: Superar los $4 para ser listados en el NASDAQ
Hoy se cumplen 2 años desde esta nota de prensa que supuso la salida de una de las Bancarrotas más controversiales de la Historia... David vencio a Goliat y los pequeños inversores salimos vivos y estamos ahora disfrutando las revalorizaciones.
SEATTLE, March 19, 2012 /PRNewswire/
Washington Mutual, Inc. (Pink Sheets: WAMUQ) ("WMI" or the "Company") announced that its Seventh Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code (as modified, and as confirmed by order, dated February 23, 2012, the "Plan"), became effective today, marking the successful completion of the chapter 11 restructuring process.
In connection with the Plan becoming effective, the Company will commence the distribution of funds of approximately $7 billion to parties-in-interest on account of their allowed claims and the distribution of substantially all of the stock in the reorganized company to equity holders. The Company's common stock, traded over the counter under the ticker symbol WAMUQ, has been cancelled.
As a result of the Plan becoming effective, WMI has emerged as a newly reorganized company, WMI Holdings Corp. ("WMI Holdings"), which will consist primarily of WM Mortgage Reinsurance Company, Inc. ("WMMRC"), a wholly owned subsidiary of WMI that is incorporated in Hawaii, and which will be funded by a $75 million contribution from certain WMI creditors. In addition, the Company will have access to a $125 million senior credit facility to be used for working capital and permitted acquisitions and originations in the financial services sector. Initially, the primary business of WMI Holdings will be a legacy reinsurance business that is currently operated in runoff mode by WMMRC.
"The outcome of this process is a significant achievement for the equity holders of WMI, who will have the opportunity to benefit from an ownership interest in the reorganized company," said Michael Willingham, Chairman of the Official Committee of Equity Security Holders for WMI and a member of the Board of Directors of WMI Holdings. "The new Board of Directors will form a Corporate Strategy and Development Committee to begin exploring opportunities available to the Company to enhance the value of the reorganized Company's assets for the benefit of the company's new shareholders."
As previously announced, Michael Willingham, Diane Glossman, Mark Holliday, Gene Davis, Timothy Graham, Steve Scheiwe, and Michael Renoff will comprise the Board of Directors of WMI Holdings.
WMIH cumple 2 añitos
Nos vamos acercando al mes de abril! Un nuevo comienzo. Pronto sabremos que valor oculta realmente WMIH. SPAV, mergers, buyout o la forma que se le de, la próxima parada será el pago a Escrows. Acordaros de estos datos:
1. WMI LT (and especially Susman) wouldn't pursue GS without having any dirt on them!
2. Susman's motto is: "Trial by agreement", they billed next to nothing in 2013, so an agreement is made in 2012. (also remember they ARE the most feared law office in the country).
3. NOL's would be a whole lot more (assets were at least 32 billion worth) if there wasn't some kind of 363 assets sale.
4. The PAA between FDIC and JPM hasn't finalized yet AND JPM is not the legal entity to which foreclosed former-Wamu property are assigned. THIS IMHO IS VERY SIGNIFICANT.
5. Walrath extended employee claims etc. WAY AFTER bar date.
6. PIERS could have been paid out over a year ago, but hasn't.
7. WMI LT brought down litigation reserves from 20 million to 8 million, which implies to me that there are NOT very spectacular third party suits coming.
8. D&O claim for 250-500 million.
9. And why or why aren't the former WMI Holding assets (besides WMMRC and WMIIC) not sold yet? Me thinks an all-in-one deal)
10. The term escrow is derived from the French word, escroe, meaning scroll or strip of parchment.(2) By traditional legal definition, an escrow is a written instrument representing a legal obligation which is deposited by a grantor, obligor, or promisor with a third party with instructions that it be delivered to the grantee, obligee, or promisee upon the fulfillment of a condition.(3) Virtually any written instrument may be placed in escrow, and modern escrow arrangements often involve the deposit of money."
"A typical use in a corporate transaction is to escrow a portion of the purchase price of a business to secure indemnities given by the seller that cover warranties and representations that cannot be performed or verified at the time of closing."
See http://business.highbeam.com/127/article-1G1-13654255/escrows-and-bankruptcy
Conectad los Puntos!!!
Excelente artículo...gracias a Troy Racki
Mar. 23, 2014 12:33 PM ET | About: WMIH, Includes: JPM, KKR
Disclosure: I am long WMIH. (More...)
Summary
$5.97B NOL assets with 273M shares.
WaMu may become "KKR special purpose acquisition vehicle".
KKR's Head of Financial Services joins WaMu board.
Expect high volatility.
6-month target: $4.30.
March 19th marked the two-year anniversary of Washington Mutual's (OTCQB:WMIH) emergence from bankruptcy, signaling a possible new future for the 119-year-old former banking giant and its diehard shareholders. Brought down in September 2008 by tightening credit markets, poor mortgage investments, short sellers, and now accusations of LIBOR price fixing, the FDIC seized the bank in a controversial move in which JPMorgan (JPM) profited by some $28B, but left WaMu shareholders with nothing. The company's 41-month bankruptcy itself was not without its fair share of conflicts including claims of insider trading, the company's own legal team accusing shareholders of milking the system, creditors receiving hefty interest payments, and over $1.1B in reorganization costs. At the end of the day, carving up WaMu's remains proved quite profitable for most parties involved. JPMorgan walked away with $5.3B in tax refunds, cash, and securities, the FDIC $844M in tax refunds, over $325M went to WaMu's attorneys, and up to 125 cents on the dollar was awarded to WaMu's corporate creditors. Meanwhile common shareholders received just 3 cents per share of equity in the reorganized WaMu, shares that once sold in the analyst Kool-Aid days of 2007 for $45. While most institutional investors bailed out long before the judge signed off on the company's POR, diehard retail shareholders doubled down, hoping to recover some of their losses.
A New Beginning, Old Habits
In December, WaMu's new beginning started in earnest with the announcement of a commitment for strategic investment with KKR & Co. L.P. (KKR), in which shares surged some 50% on the first day alone. Since then shares have returned over 290% on speculation that WaMu may soon merge with another company in order to start utilizing its $5.97B in NOL tax assets. While its NOL usage possesses a number of restrictions -- making utilizing them quickly a difficult task -- by surpassing its two-year mark WaMu can now look outside the financial arena at possible targets whereas before it could not. WaMu may not have to look far however. Some have speculated that KKR may have taken on WaMu with a bigger play in mind. Stephen J Errico of Locust Wood Capital Advisers has characterized WaMu as a "KKR special purpose acquisition vehicle," and to, "expect acquisitions to be announced sooner rather than later." With over $90B of assets under management, KKR certainly has the size and the rolodex to make a deal happen. It may very well already have a plan in motion, though shareholders will be the last to find out.
At WaMu's June 2013 annual meeting, information disseminated by the company's board to shareholders was exceptionally vague, leading many to believe little was happening, even though the KKR deal had been brewing at least a month prior, a detail was not released until January 2014. At the time, shareholders questioned what caused shares to pop up 47% in May 2013 for reasons unexplained. Indeed, on May 17, 2013, WaMu shares experienced over a 2400% increase in average volume, leading some to question if insider information was still leaking out.
In WaMu's most recent annual report, the company states that as of the end December 2013, no definitive acquisitions had been determined, though more than 20 potential target companies had been considered. However, shares have still climbed 20% in the past month alone without any material information. It is fair enough to reason that if insider activities were engaged in during bankruptcy (settled without admission of guilt) and again in May 2013, those unseen hands may again be tipping as to the company's prospects.
Reading Between the Lines
March has been a high volatility month with shares seesawing some 39%. With the announcement of a merger or buyout able to occur at any time, volatility will likely persist. The expectation is that a deal is soon to come. In a recent straw poll amongst shareholders in a closed forum, 54.1% predicted an announcement by May 18, with only 6.5% after September 7. Whenever it does occur, upon such an announcement WaMu shares will likely surge, akin to the December 10 KKR announcement. With the continued limited information, the best conclusions as to WaMu's future can only be gathered from what is read between the lines. For example:
KKR would only invest in WaMu if there was an adequate risk vs. return to be made. With 61.4M warrants blended at $1.38/share, the securities have only appreciated 235% based on WaMu's March 21 close. In a high speculation stock such as WaMu, KKR would certainly expect more of a return than that. KKR's 7.5% PIK notes indicate how much they view the speculative nature of WaMu shares.
Tagar Olson, KKR's Head of Financial Services, has been appointed an observation seat on WaMu's board of directors. Mr. Olson would not be on the board unless plans were in motion.
KKR's investment will eventually add 71M additional shares, or a 26% dilution. During bankruptcy proceedings, Steven Zelin of Blackstone Advisory Partners stated that WaMu's NOLs would likely be discounted by 25% to 35% for transaction risk were the company merged in an all-stock transaction with another entity. Is KKR signaling that it will eventually consume WaMu in its entirety? In December, KKR made a bid to take over its KKR Financial (KFN) affiliate.
The KKR deal was seven months ahead of shareholder knowledge. They know more than anyone else does at this point.
KKR has the right to participate in future WMIH equity offerings, up to an aggregate of $1B. Such a number indicates that KKR sees a future value in WMIH of at least that amount.
Hard Numbers
At this time, WaMu lacks hard numbers in order to put a future value on shares, forcing one to resort to a large amount of guesswork and reliance on past results to predict future outcomes. As it currently stands, WaMu has about $65.1M in equity, a number relatively unchanged in the past year because projected losses by its subsidiary reinsurance arm have been less than expected. This is a good thing because its subsidiary still owes $105M on notes paying 13%. The better-than-expected losses have negated interest payments, resulting in a $338K profit for the year, verses a $12.4M loss in 2012. If the housing market continues to improve or tread water, WaMu may be able to eventually profit off its reinsurance arm, which had been left for dead by JPMorgan.
With $65.1M in equity, $10.6M from the sale of preferred stock to KKR, and an eventual $84.7 in cash from the sale of warrants to KKR, WaMu's total hard equity rises to $160.4M based on 273M shares, or $.59/share. After that, the math gets fuzzy because it becomes a matter of valuing the company's NOLs. If WaMu is able to use them in their entirety, they will be able to save $2.1B in cash. With 273M shares, the NOLs could be worth up to $7.65/share. However, using up the NOLs will likely take years, or at least three based upon KKR's warrant agreement. This NOL value coupled with hard equity creates a total market value of $2.24B. While such a valuation seems pie in the sky, it is supported partially by KKR's right to participate in future WMIH equity offerings, up to an aggregate of $1B and including a cap in ownership by KKR of 42.5% of WMIH's common shares. Based on the $1B for 42.5% ownership valuation, WMIH's market cap would weigh in at $2.36B, a differential of just 5%. While this is no way an assurance of future value, it does lead credibility to the $2.24B value, otherwise why would KKR request such a right. Under this evaluation, KKR's 26% interest in WMIH for $95M would reap $620M for KKR's equity -- a tidy 650% return -- a number in line with the speculative nature of WaMu (see #1 above).
For those of a more conservative mind, if KKR's rights offering states they view the company having at least $1B in value (see #4 above), then shares should reach between $3.66 and $4.95 depending on the future 273M or the current 202M shares. Under this projection, it assumes either half of the NOLs expire unused or the company takes on further dilution. However, because of IRS Section 382 limitations, WaMu's current shareholders need to maintain at least 50% ownership of the company, which limits dilution. Based upon this $1B valuation and blending the price ranges, a $4.30 six month price target is a projection within reason but likely to change once WaMu and KKR announce their first move.
http://seekingalpha.com/article/2103953-wamu-seesaws-on-m-and-a-speculation?source=feed_f
Traducid con atención...
BlueeFoxx Member Level Tuesday, 03/25/14 10:06:14 AM
Re: None
Post # of 397158
There are some developments in some smaller cases in District courts in CA, WA and FL that is very interesting. I do not have the resources (LEXIS-NEXUS) to track down what is going on, but if any one here does. Let me know..
Here is why... From what I am hearing, the FDIC is involved in "local lawsuits where JPMC has foreclosed on property capitalized by WAMU" and the problem for them, is they can not produce a deed to properly foreclose. In filings, the FDIC has referenced a 118 page document called (you guessed it) the Purchase and Assumption agreement. In which it states the Mortgage Rights were never legally transferred to JPMC.
If any of you remember correctly, WAMU "outright owned" mortgages that were entirely capitalized by the bank. In Mortgage terms they are called "conventional mortgages." Many of these mortgages were also "top-tier" mortgages with Excellent loan to value (LTV) ratio's. They were issued and "in-house" capitalized by the bank, so that means the bank owned them.
Did they get transferred in the sale by the FDIC?. Answer...NO
Who owns them? As far as the POR7 goes.. WMILT would own the rights to the 190B in Mortgages that did not get transferred. Thus, if this is true, the FDIC can not close out the PA in Sept.
What we need to do is DD on this whole scenario playing out in courts. I hear there is a 118 Page PA document on file in one of the courts where JPMC is being sued. That could be the section 3.1A that disappeared. Don't want to get your hopes up, but if this true, then our escrows are "GOLDEN TICKETS!"
Cheers
and Good Morning.
P.S. I just got this info last night, will keep board apprised of what I come up with. I am going to try and get that document.
La fecha para que la transacción se complete es 31 de marzo... igual tenemos algo que ver al estar en Insurance.
Buenos días:
Las dos últimas semanas han sido las más tranquilas desde hace unos meses. El precio se mantiene estable en la franja $3.20 a $3.30 habiendo cerrado a $3.25 ayer. Pienso que esta próxima semana con el inicio del nuevo trimestre deberiamos tener noticias para volver a reactivar esto.
Stephen J Errico de Locust Wood Capital Advisers ha presentado a WMIH como el SPAV "Special Purpose Acquisition Vehicle" de KKR y que espera adquisiciones más pronto que tarde. Con más de $90.000 Millones en activos bajo su Management, KKR ciertamente tiene el tamaño y contactos para hacer que esto ocurra. Ya tienen un Plan en marcha aunque los accionistas seamos los últimos en enterarnos.
Por otro lado USA suele reportar por trimestres así que la primera operación de WMIH sería más que interesante se tuviera planificada para principio de abril... inicio del próximo Quarter.
El hecho que la Junta Directiva de WMIH ya cuente desde el 13 de marzo con Tagar Olson que es un peso pesado de la industria financiera dentro de nuestro equipo me da mucha tranquilidad y garantias sobre el futuro, puesto que KKR siempre busca generar grandes multiplos en sus inversiones y contamos con $5.97 Billones de NOLs por descontar.
http://biz.yahoo.com/e/140314/wmih8-k.html
ITEM 8.01 OTHER EVENTS.
On March 13, 2014, WMI Holdings Corp. (the "Company") entered into an agreement (the "Observer Agreement") with KKR Fund Holdings L.P. ("KKR") and Tagar Olson ("Mr. Olson"), Member and Head of Financial Services of Kohlberg Kravis Roberts & Co. L.P. Pursuant to the Observer Agreement, KKR was given the right to designate one representative to attend meetings of the Company's Board of Directors (the "Board") and the Board's committees (collectively, the "Committees") as a non-voting observer. In connection with the Observer Agreement, each of an affiliate of KKR and Mr. Olson entered into a confidentiality agreement with the Company in respect of any information and materials obtained at meetings of the Board and the Committees.
Nuestros más ilustres bashers Maximunae y Besugo han desaparecido de este foro porque el precio subio por encima de $3 algo que creian lo habiamos soñado... ;) :) pero lo que ellos no saben todavía es el autentico potencial de este valor que se descubrirá en próximas fechas.
Ya solo quedamos Satinfotec, Manzana que se asoma de vez en cuando para ver cuando se sabra algo de los Escrows y Chikis. Ptolomeo lei que vendio hace tiempo aunque ahora lo este lamentando. :(
Entramos en una fase muy interesante del valor pues pronto conoceremos los grandes planes que KKR tiene diseñados para nosotros los pequeños accionistas y que estamos montados a la chepa de los Hedge Funds que manejan esta pequeña joya aun por descubrir.
http://seekingalpha.com/article/2103953-wamu-seesaws-on-m-and-a-speculation
Para los que no hayan leido el analisis de Troy Racki os pego su enlace para que lo podais leer con tranquilidad. Buen fin de semana a todos.
Gracias Mr Simpson por tus aportes permanentes.
Estamos pendientes de nuevos acontecimientos; que sean beneficiosos para los actuales accionistas de WMIH.
saludos
