SOOOO...We see now that not All the parties have reached agreement..(Bank bondholders-EC committee ect)...Plus, we know that "ANY" deal "MUST" receive the approval of the court.
This "IS" a high pressure play (risky) by Rosen for WMI in concert with JPM & FDIC attorneys who want to move quickly to settle.
The problem for them now, is that they have exposed their hand.
WMI execs are in bed with JPM to cover their own failures (perhaps criminal)...and they don't mind shafting their own shareholders in the process.
Attorneys for the Bank bondholders aren't carrots..and neither are the lawyers for the EC.
...and I doubt the judge in this case is thrilled to see this kind of duplicitous (deceptive) activity in concert by supposed adversaries, now holding hands to rush the quarterback (the court) with this kind of high stakes brinksmanship in the final moments of the game.
The good news for WMI shareholders and creditors is that the nearly $7 BILLION now on the table is not only a good sign...but, now there's no doubt the $7 billion represents a fraction of what Rosen's client and FDIC will eventually have to cough up.
I would expect this third rate power play will come back quickly to haunt WMI execs at the upcoming shareholders meeting (Yep.."upcoming")..no doubt the court will favor the EC request for the meeting and the EC will be guided by legal minds who know how to play this game as well as anyone else that WMI execs place at the table.
...and bank bondholders and creditors' attorneys didn't just drop off the turnip truck this morning..No doubt they know their clients will do far better with a new board at WMI who may be more inclined to use their settlement resources to re-enter the market and earn real value..thus repaying restructured debts more fully, more quickly and establishing more longterm, mutually beneficial relationships that profit everyone...not just a few selfish executuives at WMI and JPM.
This game is about to become very interesting.
My referance to "Rosen's client"..in the 7th paragraph..was NOT inadvertent.
It is intended to convey my personal belief that WMI is holding hands with JPM and FDIC in this case to cover their own posteriors.
If there was, ever, a doubt about this, I strongly suspect the attorneys for EC and the bondholders have a clearer view after Rosen dropped all pretenses before the federal judge yesterday, via this phoney "SETTLEMENT-THAT WASN'T"-ISN'T---and is not ever likely to be...
I know that the court can approve/reject any POR based on the proposed settlement.
But does the court have juridication on the proposal itself? What if the WMI BOD approves the proposal? Any thoughts?
BVSN..The court "IS" the final arbiter..the decider..
Although settlements may be formulated and agreed by the parties, in the final analysis, a settlement (proposed or agreed) is "NOT" a settlement until the court rules on it.
Thats the reason the Equity Committee have request a sharehodler meeting to fire them and to elect a new BOD.They where just on the short time.This is just last atempt from them to stay in power and to not be fired from the Shareholders.Thats why is so important to hold into your shares.At this moment I feel good becouse the CHinees and the Bondeman hold something like 800million shares.SO when that matter comes even if the Shares are acounted in the days to come i say that we have a new board of Directors.This have to come after J Walrath brings down the hammer on the shit proposition from WEIL.I think we might hear another time the word "Frivolouse"