messages.finance.yahoo.com/Stocks_(A_to_Z)/...;tof=3&frt=2
Zitat:
Rosen and the four hedge funds will attempt to keep the GSA alive by making modifications to the current POR and incorporate the third party releases that FDIC and JPM desire.
POR modifications and clarifications:
1. Additional valuation support for WMMRC indicating that it is already fairly valued or undervalued by as much as 50m.
2. Supported documentation that NOLs in reorganized company will have little or no value due to yearly limitation and lack of profitability in remaining entity - WMMRC.
3. Support of WAHUQ as debt instrument.
4. Compensation to equity in exchange for third party releases:
a. Approximately 375m for all preferred classes including TPS for 5% recovery.
b. Warrants issued to common equity holders pending future value of reorganized entity.
Rosen will explain to Judge that JPM and FDIC have agreed to give preferred equity 375m of the tax refunds due JPM as compensation in exchange for third party releases. Rosen will further explain that, although common equity is way out of the money, WMI DIP have agreed to issue warrants to all common equity holders that will expire 18 months from time of reorganization. These warrants will allow each equity holder to purchase stock in WMMRC at a strike price of $1 which means that reorganized entity must effectively have value of more than 1.7b for these warrants to be exerciseable (have value.) Thus, Rosen will claim that if the NOLs prove to have value beyond what is anticipated, common equity will be able to share in this windfall. Of course, through reorganization, with new stock and funds being brought into WMMRC, this amount must be discounted in the calculation to determine the value of WMMRC.
As you can see, Rosen has provided compensation to all equity classes in exchange for the third party releases. He will ask the Judge to approve these modifications including the releases even though equity will not directly agree to them. He will claim that this is very fair and reasonable for equity considering all of the claims involved. So, the big question is whether the Judge finds this compensation as reasonable.
It is my expectation that JPM and FDIC will agree to extend the GSA based on some kind of plan similar to above. This will likely leave equity with only a few chances to fight back including TPS winning its appeal, Susman and EC first getting approval to move forward with and then winning its appeal of original POR opinion, or final appeal by EC and TPS against the confirmed POR with modifications.
I am sorry I paint such a grim picture here, but cannot believe JPM will walk away from a potential windfall of additional billions of dollars from WMI without trying one more scheme by Rosen.
Zitatende
MfG.L:)
"Mit der Dummheit kämpfen Götter selbst vergebens"
Zurück
Weiter
