Great explanation of day's events from YHOO
A very one-side settlement offer... 3/12 359p The interesting thing about the 'settlement' proposal is how one-sided it is. Think about it for a minute. WMI was almost certainly on the verge of getting a favorable ruling on the $4 billion and they are apparently already in possession of the first multi-billion tax refund. They've got litigation underway that they are likely to prevail on for some additional billions of dollars. In return for dropping the litigation, they get the $4 billion that they would have gotten anyway and a fraction of the two tax refunds, one of which they already were in possession of. JPM is putting essentially nothing into the pot, nor is the FDIC. I don't think the EC will have any trouble showing that the'deal' gives WMI an empty sack in exchange for considerable relief and assets transferred to JPM and the FDIC.

It's only an 'offer' until the court approves it. The court is ultimately responsible for the administration and distribution of the estate assets, not the debtors. The debtors are in the position of presenting the 'offer' to the court with a big smile...but that's the extent of it. They can't actually accept anything. They're debtors. It's not their money any more.
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marymbobh

Re: A very one-side settlement offer...3/12 408p The Reuters article explains pretty much the details...and also states that the arrangement as yet to be put in writing, approved by the companies BOS's, FDIC BOD, and other parties meaning EC and Unsecured Creditors .....

This agreement mentioned today by Weil/FDIC/JPM will allow Weil to submit their plan behalf of debtors WMI for March 26th.....HOWEVER, we will hear from Venable next week agressively opposed as well as some other parties.... and I do not see the judge granting the plan on the 26th as it is not an equitable arrangement.....As mary pointed out..it was already a given that WMI would received the $4bil bank deposits...(where is the interest on those funds???)...

Could have been played today in court to shake out "vulture" traders in the stocks...as they have quickly bounced after hitting their lows of the day.... and now who would be buying at such an opportunity????


This is not over yet by a long shot... Rating :
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lawrencemea...

Re: A very one-side settlement offer... 3/12 409p I agree, and what a panic it caused! Today's events are really a baptism by fire for the EC's counsel, which will probably fast-track the BOD change.

What Rosen spoke of today was a proposal, subject to objection and court approval. Does that sound final to you? And he admitted that WMI has received the first tax refund, which we can estimate at $3 billion (he was careful not to state a $, as this would automatically put WMI's A>L). That money will remain in WMI's hands AND no portion of the $4 billion will offset it without Judge Walrath's and the EC's consent.

You have to remember that what Rosen was describing is a proposal, nothing more. (You'll recall he referred to "subject to documentation" or words to that effect.)

Nothing today -- not the split percentages, nothing -- can occur without filing the proposed agreement and Judge Walrath scheduling same on notice and hearing. That means the EC will be able to object to the percentages (and, believe me, it will) and everything else. And don't lose sight that WMI will soon file its MOR, which should reflect the first tax refund. That is enough to make A>L right now.

The EC can't object to the settlement pleading until it is filed, but I expect it's counsel will be talking to Weil and the other parties' attorneys this weekend. What happened today, just like the forthcoming proposed plan (which is being filed simply because WMI can't delay filing it) is not written in sand, much less stone.

If you don't file pleadings, nothing happens. You file pleadings, other parties file pleadings supporting or opposing your request, a hearing is held, and your order is signed as is, modified, or denied.

In this case the court could rule on nothing because no pleadings were filed. This was a stall for time and the fact that the EC knew nothing isn't relevant because things are exactly where they were this time yesterday except that (1) the EC's counsel now knows what was discussed, and (2) JPM, the FDIC, and WMI (the same three parties who mysteriously colluded over the $4 billion since Nov. '08) kept the court from giving that money to WMI. (As I've said many times, I've never seen a debtor leave its $ in the hands of a hostile party.)

In effect, they duped Judge Walrath, and don't think the EC won't say so when the 'documentation' is filed. Rating :
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bopfan