The 5 year lookback of NOLs "in excess" of 20 billion is enough to make the preferred shares whole. Hence, the "exigent circumstances" stated by the U.S. Trustee in requesting an equity committee. Do your own due diligence into the amount of taxes paid by WMI going back 5 years (their go-go years) and the total amount of NOLs.
Now onto the common. While you are correct in writing that WMI must win some sort of settlement for the commons to see some return you fail to mention that WMI is also suing the FDIC separately for 14 billion. Let's see....a suit against JPM in excess of 30 billion (including trademark infringment, capital contributions, and a host of other business torts), plus a suit against the FDIC for 14 billion and you do not think common will be "in the money"? According the attorney billings JPM, FDIC, and OTS have been part of settlement negotiations and many references to "global settlement" have been included. Even a "global settlement" of 1/10th of the value of claims against JPM/FDIC would lead to a $3/share settlement for the common. Mr. Freed, you owe your readers a more detailed analysis because if they miss out on a run from 0.13 to $3.00 they will want to know why you did not see it coming.