Is David Tepper’s Hedge fund Appaloosa, trying to K-MART the WAMU shareholders?
Is David Tepper’s Hedge fund Appaloosa, trying to K-MART the WAMU shareholders? Instead of the $ 100 million worth of tax breaks that company financial
advisors estimated would be available to the reorganized company, the
post-bankruptcy Washington Mutual could take advantage of nearly $ 5.5 billion
in tax breaks, shareholder attorneys say.
That’s a big difference, and one worth a new objection to confirmation of
Washington Mutual’s Chapter 11 plan, shareholders contend.
Washington Mutual, through a spokesman, declined comment Tuesday on the bid
by shareholders to call the attention of the judge to what they say is a defect
that makes the company’s Chapter 11 plan unconfirmable.
The plan pays off billions of dollars of debts, with interest, but leaves
nothing for shareholders. Their attorneys say that’s improper for a lot of
reasons, including what they claim is an overpayment to noteholders that struck
a deal with the company. In addition to getting paid in full, four hedge funds
will control the post-bankruptcy Washington Mutual, an entity that is supposed
to manage a portfolio of insurance assets.
In the hands of Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management, however, the reorganized Washington
Mutual will have access to the capital and financial expertise to build a book
of business designed to make the most of billions of dollars worth of in tax
writeoffs, shareholders contend.
It seems like Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management control the whole wamu company and they seem to want all the assets themselves and leave the shareholders with nothing.
What do you think? Best answer:
Answer by JoeyV
If the company is in bankruptcy, the shareholders pretty much deserve nothing. How does this sentence seem:
“It seems like Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management control the whole wamu company and they seem to have all the liabilities themselves and the shareholders can walk away with no liability”
It’s just as true as your statement.
Usually shareholders don’t get anything in bankruptcy. This is just a shoddy attempt by the shareholders to find more villains as hedge funds are always good villains. This whole WaMu shareholder movement is really silly. Too bad they didn’t understand the risk and thought that WaMu was a nice safe stock. My heart bleeds. The govt screwed them just like they screwed oodles of taxpayers.
www.bankruptcy-attorney-news.com/ohio/...he-wamu-shareholders/
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