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

Looking ahead... 19 minutes ago Okay, if there's going to be an announcement of a 'global understanding', it will be before the hearing at 11am tommorrow. WMI agreed to a 1 week delay at the request of JPM and the FDIC with the court concurrence with the undoubted assurance of all parties that fruitful discussions already had occurred that would lead to a resolution. If there is no such resolution, the court is going to be extremely unhappy as it would have been both a misrepresentation of the status and a waste of the court's time and both are things that the overcrowded bankruptcy courts do not take lightly.

The handful of media account suggested that the 'global understanding' was for the $4 billion SJ but not for the larger case. That seems unlikely as there would have been no good reason for WMI to have agreed to a 1 week delay over just the SJ motion decision. Also, the delay was allegedly to allow JPM and the FDIC to do due diligence which would be pointless for the SJ decision by itself as there would certainly be a procedure after such a decision (assuming it's in WMI's favor) for JPM and WMI to work out the details of the transfer of the funds. No, the 'global understanding' was for the whole shooting match and if it does not happen before the hearing tommorrow, counsel for JPM and the FDIC are likely to have lost an enormous amount of credibility with the bankruptcy court which will seriously hurt their ability to prevail in future action.

In the absence of a settlement, the most interesting things coming up (post-SJ ruling) are the EC motions to intervene and to hold a shareholder's meeting, followed by the reorganization plan.

Here is what is going to happen
Step 1- So called Global Settlement- It is not Global but will deal with the $4 billion deposit, $6 billion IRS refund and with the Series R “exchange event”. This will have the net effect of having Cash in the estate of close to $8 to 9 billion. The estate will also have claims that will need to be converted to cash at some point. Hopefully, we will hear by Friday, March 12th.
Step 2-Plan of Reorganization(POR)- This will be the filing of the POR on March 26th. I fully expect a delay, even though this date is the last day under the so called 18 month rule. The conversation for the delay will be simple, something like… “bk law of 18 months was not designed for a complex case like WMI”. Delay will be granted.
The POR, once filed will have 4 elements:
a) The secured, unsecured, and H’s will be paid out in cash, leaving around $1 billion of cash in the estate plus the claims.
b) All of the $1 billion in cash, except for $50 million, see below, will be distributed to the Preferreds, representing 50% of Preferred Face Value. The remaining 50% of Preferred Face Value will be dealt with below.
c) The Existing Commons will be cancelled and a NEW COMMON will be issued.
The NEW COMMON will be exchanged from the Remaining Preferred Face Value of 50%, and the OLD Commons. This Exchange Ratio will be heavily argued and negotiated, but in the end, the Preferred will end up with the Vast Majority of the Common ownership and the rights to the claims that are not cash yet. I am guessing at least 90%. The OLD Commons will be severely diluted.
d) The $50 million (or an amount of cash necessary to litigate for 2-3 years will be retained in the estate) will be used to pay fees for the “great expedition to turn claims into cash” which could take another 2 to 3 years. In the end, there would be a very low probability that there would be any distribution to the NEW COMMONS from this, or at least, the probability will be extremely low. As a side note, watch for the pre-seizure commons filing a class action to get their share of this so called “value”.

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Sandiegodave

So.....................?????????

Yo espero que mañana haya decisiones favorables para el valor, y si fuera el Dorado pues seria fantastico... tengo que intentar ganarle la apuesta a Maximunae :)

Sr.simpson si tiene un rato mañanero y lee esto cuenteme algo de como va la cosa,no obstante le tendre informado durante el dia de las posibles novedades de lo que digan en el foro via sms
A PARTIR DE QUE HORA PIENSAS QUE SEA MEJOR QUE EMPIEZE A ESTAR MAS ATENTO TE CUENTE DE COMO VA?

BUENO ESPERO TU CONTESTACION QUE TENGAS BUEN VIAJE Y AVER SI MAÑANA TE DOY ALGUNA BUEN NOTICIA.

PURE BULLSHIT!!!

A ver si entendí bien... Las "new commons" no contemplaria a las old commons existentes antes del "Plan of Reorganization"? Ahora bien, quien es el que escribe???

Este debe ser el último Basher de la jornada, el cual tiene la gracia de sacrificar en su comentario solo el valor de las comunes para que antes del Plan de Reorganización acaben de vender los que aun dudan de que pasará.
Al menos hace una exposición con "su lógica" que cualquiera que no conozca a fondo el proceso puede creer lo que dice.
Mañana despues del hearing habrá subida fulminante.