to preserve the NOLs, despite equity offerings of up to $1 billion so if KKR bought it all, and $1 billion is 42%, Mkt cap after offerings is $2.2 billion for say 500 million shares then around $4 bucks.- do your own diligence
This may be pursuant to an order to pay de minimis claims for LTI interests
See following docket in bankruptcy case.
Case 08-12229-MFW Doc 11448
Allowed CCB-2 Guarantees Claims, and General Unsecured Claims) were paid in full. Future distributions by WMILT will begin to be made to holders of Liquidating Trust Interests in
RLF1 9602901V.1 2
Case 08-12229-MFW Doc 11448 Filed 11/15/13 Page 3 of 6
Tranche 4. Once holders in Tranche 4 receive their respective distributions, all unsecured creditors will have been paid in full.
Full statement refers to exploring financing alternatives including reducing debt or common or pfd stock issue.
(including rights offerings to existing shareholders)
Later. it discusses differences between equity value of $76 million and value if NOL's can be used.
As previously disclosed in our prior SEC filings, WMIHC retained Blackstone Advisory Partners L.P. ("Blackstone") to assist WMIHC in developing our acquisition strategy and to provide financial advisory services in connection with potential transactions. Under the terms of the agreement, Blackstone is working with us to consider potential mergers, acquisitions or business combinations, and is assisting with developing an acquisition strategy, identifying and evaluating strategic opportunities, collecting and analyzing information regarding potential target companies, determining the valuation of potential target companies and advising on capital-raising, if needed, to fund this external growth strategy. In addition, WMIHC's board of directors has established a Corporate Strategy and Development Committee (the "CS&D Committee") in furtherance of the foregoing objectives. The CS&D Committee has met regularly with Blackstone to discuss and evaluate potential transactions of varying size and across varying industries. During the quarter ended September 30, 2013, the CS&D Committee met six times. The foregoing notwithstanding, we have not, to date, identified and executed definitive documentation relating to any transaction.
In connection with, and in addition to, the foregoing, we may explore various financing alternatives to fund our external growth strategy, including improving our capital structure, which may include increasing, reducing and/or refinancing debt; pursuing capital raising activities, such as the issuance of new preferred or common equity and/or a rights offering to our existing shareholders, launching an exchange offer, and pursuing other transactions involving our outstanding securities
Immediate $1.9 bill extr gain, $8 billion of unrecognized gain, $2 billion tax refunds, $1.4 bill time value of money for holding $4 bill for years WAMU deposit, adds up to $13.4 bill. So let them pay the full Justice Dept claim and then "sue" to get their money back, because if there is any ambiguity in the "P&A" agreement, they contributed to it, so it can be construed against them. Should be good for about a score of years in COFC, where time passes slowly. Why should JPM, which agreed to a settlement preserving claims between govt and JPM, get away free when all the equity shareholders had to give releases to get crumbs. JPM has been reporting gains ever since from releases of improved loans.
Just to indicate how long some employee claims may take to resolve (Mostly affect WM Lit Trust, not WMIH) here is schedule Serve discovery Nov 1, 2013, Document production Feb 28,2014, addl witnesses Mar. 15 2014, Depos, affidavits, April 2014, Depos completed June 30, 2014, Expert reports Jul 2014, HEARING Sep 8, 2014, assume it runs to end of Sep, Post hearing memoranda Oct 15.
Note, dates are approximate because not counted 1 by1 (+156 from date X) -to some extent may be shortcut by motion to estimate certain employee claims. Someone else asked about payoffs to PFD vs. LTI's. Last round of negotiations of POR gave PFD both liquidating interests and WMIH equity at higher ratio than common to WMIH. Presume WMIH is actually working on reorganizing, M&A activity for sometime early next year.