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jcp -- the plan calls for all existing equity shares (WAMUQ, WAMKQ, and WAMPQ) to be exchanged for "NewCo" shares -- shortly after exiting bankruptcy. The exact date this exiting will occur, and the exact date following that -- are both unknown. Although they are targeting the 8th for the exit. Share conversion will come later.
How the market allows the current stocks to be traded is up to the market, buyer and seller. There has been nothing in anything from the Debtors or the EC about that specific pecuriarlity. But it should be obvious that shares you can't get "released", and then don't get converted (because of a lack of release) are going to disappear.
Now, with respect to the "NewCo" stock -- as I said, it will be a few days, minimum I believe, before they will finalize the conversion ratios -- it's a complicated formula for them to work out -- and can't be pre-determined because it depends on how many shares got "released". But once it's done, then I expect to see the formula published, and go forward.
Then, as with regards to trading, that is unknown. The EC has stated as such, as I recounted in my Q&A:
In their Q&A from 1/6/2012 - Docket 9350 --
www.kccllc.net/documents/0812229/0812229120106000000000006.pdf
Q: Will the stock of Reorganized WMI be tradable immediately upon emergence?
A: This will depend on a number of factors, including requirements imposed by the SEC upon emergence from bankruptcy. The new Board of Directors will evaluate the options available with regard to trading markets and determine what is in the best interests of the reorganized company. The stock will not immediately be listed on a nationally recognized stock exchange and may not ever be so listed. Reorganized WMI may be able to have its stock quoted on the OTCBB and/or the "OTC-Pink", subject to meeting certain eligibility requirements. Subject to the restrictions on transfer contained in the articles of incorporation discussed above and complying with applicable securities laws, the stock should be transferable if quoted on the OTCBB on OTC-Pink.
So, in other words, NewCo stock may not be liquid and immediately tradable. And how long that exists is unknown.
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The court acknowledged that delaying 'a few days' for March 7th as a final date was acceptable, and even acknowledged that it would hurt the PIERS recovery slightly there.
Additionally, it was stated in court that the 8th would be the earliest possible date for emergence from bankruptcy -- that is the revised date, due to the 7th being the final deadline for brokers to tally releases.
So neither are really a surprise for those following along.
That said, one can _infer_ from the courts opinion that getting creditors paid as soon as practical, so that the PIERS class would not be further injured, infers that the court also is expecting exiting from bankruptcy quite soon as well.
...Catz
The transcript references to back this up are: -- Last day of Confirmation...
14 And so, just to focus for a moment on time frame,
15 because this will not truly be a success if we were to
16 confirm and then not actually make distributions promptly.
17 There is another gate that’s come up in the papers dated
18 March 7, which will be an extended deadline, as I understand
19 it, for releases to be granted by shareholders and, of
20 course, that is the way that they will receive a recovery
21 under the plan.
22 That would mean we can’t go effective until March 8,
23 the next day. And so in conversation with the parties we
24 have targeted March 8 as a target date. It’s not a hard
25 date, of course, there’s going to be a lot of wood to chop
1 to actually get to a closing, but at least we have a date
2 that the parties have identified that we will target for
3 closing. By closing what we mean is a goal that the first
4 very, very large distributions are actually made at that
5 time.
---------------------
5 the balloting had to be done through those brokers. But I
7 6 agree that a short extension to allow shareholders to be
8 7 sure they participate in the case is not inappropriate.
9 8 Even though I share the peers {sic. - PIERS meant} indenture trustee’s belief
10 9 that we should get this over with and that a distribution
11 10 should go out to creditors as quickly as possible and I hope
12 11 that the parties work toward that end.