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PLEASE READ THE CORRECTION REGARDING THE WAHU SHARES BELOW IN THE THREAD.
If you are a new reader please ignore this message
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If you have any questions regarding the inforrmation provided here, I will be happy to answer it to the best of my ability.

After a significant amount of research, Wamurape.org/WamuCoup.com presents the following information regarding the current worth of Washington Mutual securities.

Prior to discussion of the worth of the securities, it is important to realize what the current filings of Washington Mutual Inc entail. Based on the following three reports provided by the organization, it is now clear that at a minimum, current assets and liabilities are approximately equal in value. Additionally, more than half of these assets are held in cash and cash equivalents. Liabilities in bankruptcies are generally not settled at a 100% so there will be some sort of reduction in these. The company has 7.8 billion dollars in liabilities and 7.3 billion dollars in declared assets.

Assets (MM$)
Cash 3789
Pension/Profit Sharing Plans 639
Visa Stock 286
Government Bonds 379
Tax Refund 742
Insurance Policies 94
Subsidiary Value 1152
Accounts Recievable 81
Venture Capital 110
Total 7272

Washington Mutual Operating Report
http://www.kccllc.net/documents/0812229/0812229081202000000000001.pdf

New Operating Report
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6333610

Note: The A/L have changed since the original report with the pension fund being gone. Also, it looks like WAMU INC might be entitled to a larger tax refund.

Washington Mutual Asset& Liabilities Filing
http://www.kccllc.net/documents/0812229/0812229081219000000000011.pdf
http://www.kccllc.net/documents/0812229/0812229081219000000000010.pdf
According to a recent Moody’s report it is claimed that it is unclear whether the cash belongs to Washington Mutual due to an oblique reference to FDIC interference. It is clear from the filings by Washington Mutual that this sum of money does belong to them. The FDIC has no authority in the bankruptcy court and the fact that it is interjecting itself into the matter is an abuse of its charter and taxpayer funds as its duty to the banks depositors has been fulfilled.

Rules Governing FDIC
http://www.fdic.gov/regulations/laws/rules/

Two possible scenarios are probable in this bankruptcy, with one being Chapter 7 liquidation and the other being a reorganization through the Chapter 11 process. Based on the hiring of Alvarez & Marshal, who specialize in turning around ailing companies, the most likely scenario will be reorganization.

Basic Bankruptcy Information
http://www.sec.gov/investor/pubs/bankrupt.htm
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html

Restructuring Company
http://www.alvarezandmarsal.com/

Given this, it is important to understand the priority of each security instrument to understand the chance of eventual recovery.

Explanation of Order of Priority
http://www.ottawacapitalnetwork.com/entrepreneurs/faq.cfm?faq=6

With this concept understood, an explanation will be made of each WAMU security and its chances for recovery based on the current A&L filing and operating report. There has been significant misinformation provided to shareholders regarding this topic so it is the goal of our organization to clarify things to prevent fraud from occurring. The stocks described below are in order of recovery priority given either scenario occurring.

Stock Ticker: WAHUQ.PK

This stock is not actually a stock in Washington Mutual at all. It is preferred stock in a trust which lent Washington Mutual money in return for interest payments. The trust holds Subordinated Deferrable Interest Debentures. This means that this stock is ahead in recovery of all preferred and common stocks as it is a debt. However, it is the most junior form of all debts. Given that asset and liability filings, this stock has the greatest chance for recovery. Typically, in Chapter 11 preferred and common stocks are canceled and the debt holders become the new stock holders. Since this a debt, if this bankruptcy goes the typical route, all of the debtors will agree upon a division of the assets and new stock will be issued to them with the old stock being canceled. Given that assets approximately equal liabilities currently, this stock has the highest probability to see some sort of value returned.

Information on WAHUQ.PK
http://www.quantumonline.com/search.cfm?tickersymbol=WAHCU&sopt=symbol

Prospectus
http://www.sec.gov/Archives/edgar/data/1143930/000091205701531093/a2058482zs-3a.htm
http://www.sec.gov/Archives/edgar/data/933136/000091205701523774/a2053990zs-3a.htm

If one looks at the prospectus, it shows that 10 million were originally sold, with a face value of 50 dollars upon maturation. There was also an additional offering of 13 million shares later on. However, due to a clause in the contract, on bankruptcy of WAMU all interest for the next 33 years (since the stock matures in 2041) was accelerated. On page 35 of the A&L filing, the trust is listed for a debt of 1.15 billion dollars which is equivalent to 50 dollars a share with 23 million shares being outstanding. Also, it is easy to confirm that these are the same shares as WAHU as the liability is listed as 5 3/8 % Series Unit 144A due in 2041. However, the A&L filing is not current as the new trustee of these shares is Wells Fargo. Additional information from the trustee has been recieved that has also allowed us to confirm this information. What is important to note is that this stock does have legal representation at the bankruptcy court through Loeb & Loeb as noted in this filing which again confirms the 1.15 billion dollars.

Trustee for WAHU
http://www.kccllc.net/documents/0812229/0812229081204000000000037.pdf

A point of worry for some persons has been that WAHUQ.PK on Quantum Online and the PIERS TRUST in the A/L filing have different CUSIP numbers.

Firstly, CUSIP is a private company and does not provide a search utility for their numbers or an explanation of their processes.

The CUSIP Number listed on the A/L filing is 93933U308

If you go to the following website, you can see that the CUSIP number is for Washington Mutual Cap Trust PIERS 144A which is the same type of trust as the WAHUQ.PK prospectus has (Search for 144A)

http://www.ellsworthfund.com/ECF228.htm

I have no information as to why the CUSIP numbers are different but it is fairly clear that it is the same security. One could speculate that there is one CUSIP number for the debt and another for the stock since these are two different items

However, here is one more piece of evidence.
The following document is a deadline for filing debt with WAMU. Note the Trust Piers are listed on page 35 and it also states that if you have preferred shares in a debt, you are already taken care of and filed for. Also, note that all the other debts from the A/L filing are noted there.

http://www.kccllc.net/documents/0812229/0812229090108000000000004.pdf

Finally someone sent me this link with all of these CUSIPS clearly shown and brought together.
http://www.secinfo.com/dRM18.4f8Am.htm

And even more completely, here is the final filing with all the CUSIPS and liabilities listed (on page 5)
http://www.kccllc.net/documents/0812229/0812229090130000000000005.pdf

Stock Ticker: WAMPQ.PK and WAMKQ.PK

These are both preferred stocks in Washington Mutual. They are the first equity stocks to see any sort of recovery after debts. If further assets are found and declared or an equity committee is formed as required under the given circumstances, there is a possibility of these stocks being paid. Also, there is possibility for recovery if there is a buyout. The original issuing values of these securities were $1000 dollars and $25 dollars respectively. They both have equal priority so the WAMPQ.PK is worth significantly more per share. There originally were three million shares of WAMPQ.PK and twenty million shares of WAMKQ.PK issued. These stocks currently have no representation at the bankruptcy court.

Information on WAMPQ.PK
http://www.quantumonline.com/search.cfm?tickersymbol=wampq&sopt=symbol

Prospectus
http://www.sec.gov/Archives/edgar/data/933136/000095013407025343/v36123b2e424b5.htm

Information on WAMKQ.PK
http://www.quantumonline.com/search.cfm?tickersymbol=wamkq&sopt=symbol

Prospectus
http://www.sec.gov/Archives/edgar/data/933136/000095012406005225/v23402b5e424b5.htm

Stock Ticker: WAMUQ.PK
This is the common stock of Washington Mutual. This probably has the worst probability of any recovery unless there is a buyout or a significant change in assets. For some reason there is an impression that common stock must be maintained to carry forward the company’s considerable net operating losses. However, based on the information that has been gathered this is not true. These stocks currently have no representation at the bankruptcy court.

Information regarding NOL’s
http://findarticles.com/p/articles/mi_qa3857/is_199801/ai_n8786997
http://www.woodporter.com/ma/030301.htm

Hopefully, this article has been educational and will no longer allow persons to misrepresent the value of currently traded Washington Mutual stocks. This information was gleamed from public sources and was not reviewed by an attorney, so please do your own due diligence and read the information that has been provided.


_____________________________________________________________________________________________________
As a final personal note, i do not believe that there will be any sort of recovery in equity stocks. We were denied an equity committee (see link below) and whenever that happens in 99% of bankruptcy cases, common/preferred share holders get nothing.

http://sites.google.com/a/wamucoup.org/www/Home/files

Z
if you read the article at the bottom it says that the creditors can become the new owners under the bankruptcy exception. As long as the creditors become the new owners, then there is no need for common stock. This isn't the only article I have seen on the subject but it is definately the most straightforward.

Bankruptcy Exception
There is an exception to these rules for bankrupt corporations under Section 382(1)(5). This exception would apply if a stock-for-debt exchange was approved by a court when: (1) Deadbeatco was under the jurisdiction of a bankruptcy court in a Title 11 or similar case (i.e., receivership, foreclosure or similar proceeding in federal or state court) immediately before an ownership change; and
(2) the shareholders and creditors of Deadbeatco own fifty percent of the value and voting power of Deadbeatco's stock immediately after an ownership change (the "continuity of ownership" test).
Only stock received by "qualified creditors" is counted to determine whether the fiftypercent continuity of ownership test is met. To be a qualified creditor, the indebtedness exchanged for the stock:
(1) must have been held by the creditor at least eighteen months prior to the date of filing of the Title 11 or similar case (most applicable to long-term debt); or
(2) must have arisen in the ordinary course of the trade or business of Deadbeatco and must at all times have been held by Deadbeatco (most applicable to trade creditors).
Only stock that is received by creditors in partial or full satisfaction of the prior indebtedness is counted to determine whether the continuity of ownership test is met. Stock received by shareholders or qualified creditors in return for new capital contributions is not included.
Special Rules Applicable to Bankruptcy Even if a stock-for-debt swap qualifies under Section 382(1)(5), there are several provisions that reduce the amount of pre-change NOL carryforwards that are available to Deadbeatco.

I never understood if the deal described in the documents by FDIC with JPM was done at book value
and the only assets that JPM didn't take (intangible and goodwill) were asumed as a loss by FDIC as
it is showed on their balance sheet of the transaction, how the equity of US$26b of WMI was reduce to zero.
But anyway things are like they are.
At this moment, from my point of view the only hope for preferred and common is a legal action that
would make 1.-reverse the seizure and make WMB beneficiary of all the benefits are being done recently
with other banks. or 2.- Make JPM complete the transaction and buy WMI honoring common and preferred.
Maybe the time to clearly proof this will be when financial markets stabilize again and a judge could
evaluate all the favors were done to the entities that stayed alive and determine if WMB would survive
being beneficial of all those favors (What was done Citi, with AIG, garanteeing new debt from banks
that allowed them to get money at less than 3%, receive investmenst from goverments, borrowing
from Fed at almost 0%, etc., etc., etc. and what is left for us to see, which by the way, I belive are the right decisions.
And also if the seizure was justified or was just a panic decision and if the way that is was done was right.
Maybe at this moment a judge could evaluate that is better not to put in questioning the decisions and
autority of FDIC and anyother goverment institution even if they were wrong because that would create more doubts
and incertitude.

Someone sent me this post from IHUB regarding NOLS.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34429132

This is the original article. I suggest everyone also reads it.
http://www.woodporter.com/ma/030301.htm

Key Quote:
One of the key aspects of qualifying for NOL relief is determining just who the “qualified creditors” are. After all, it is simple to determine the identity of the pre-change shareholders. These pre-change shareholders, together with the “qualified creditors,” must own at least 50 percent of both the value and voting power of the loss corporation’s stock when the smoke clears. Comparing the shareholders before and after the ownership change is fairly straightforward.

Significantly, it is not even important what the percentage is between the portion of the company owned by the pre-change shareholders and the ownership interests held by the qualified creditors. Thus, it may be that the qualified shareholders will own all of the corporation after the smoke clears, and that the common shareholders will be frozen out entirely. That actually occurs with some frequency. This is still okay under section 382(l)(5). NOL relief will still be available.

Mike,
Thank you for all your efforts. Certainly you are making people like me few better. It's a light in the end of the tunnel. Perhaps somebody is manipulating the share's price (to down). The Wamu's graphic show that. Check it out.
Thanks, Al

Mike,
They offered 12,926,405 in July 01
http://www.sec.gov/Archives/edgar/data/933136/000091205701523774/a2053990zs-3a.htm
and
10,073,595 in Aug. 01
http://www.sec.gov/Archives/edgar/data/933136/000091205701531093/a2058482zs-3a.htm
for the 23,000,000 total.

Another interesting clause from the WAHUQ prospectus--this involves the warrant, which could come in to play under a change of control.
"In the event a bankruptcy or reorganization is commenced by or against Washington Mutual, a bankruptcy court may decide that unexercised warrants are executory contracts that may be subject to Washington Mutual's rejection with approval of the bankruptcy court. As a result, a holder of warrants may not, even if sufficient funds are available, be entitled to receive any consideration or may receive an amount less than such holder would be entitled to receive if such holder had exercised its warrants before the commencement of any such bankruptcy or reorganization."

More Information: I sent a letter to the trustee of the WAHU trust

Mr. Korsman,
I would like to verify that you are the trustee of the Washington Mutual Capital Trust 2001 which was formerly traded on the NYSE as WAHCU and is now traded on the pink sheets as WAHU.PK. I have enclosed the prospectus below.
http://www.sec.gov/Archives/edgar/data/1143930/000091205701531093/a2058482zs-3a.htm
If you are I would like to find out what your expectations are for paying back the stock currently traded upon the resolution of the Washington Mutual fiasco through the Chapter 11 process as the trust is supposed to dissolve from my understanding upon the bankruptcy of WAMU.
Thank you for kind attention
Michael Rozenfeld

This is the response from the Trustee at Wells Fargo

Mr. Rozenfeld

Wells Fargo has become the successor trustee on the Junior Subordinated Debt Securities dated as of April 30, 2001. The Bank of New York was the prior trustee.

These Junior Subordinated Debt Securities were placed in the Washington Mutual Capital Trust 2001 and due to the bankruptcy this trust may have to be or was dissolved as you have stated.

I do not know where these securities are trading nor their price.

At this point I do not know a time frame for the bankruptcy to be completed or a payout amount with regards to the trust or the securities.

I will have more information in the next couple of months as the unsecured creditors committee pursues the assets of the bankrupt estate

Hi Mike,
Again, thanks for all your work with this site.

If funds are available, I believe that the lowest value of the shares occurs in a liquidation under bankruptcy. The preferred shares in this situation appear to be worth their accreted value (~36), and their associated warrants will likely be considered executory contracts and cancelled according to the bankruptcy clause mentioned in my post above. However, the Trust is owed 1.15 billion. Thinking about this some more, I seem to remember a statement in the prospectus saying that the shares are entitled to receive the repayment of principal as well. I bet you are right that $50 is the actual liquidation amount of the shares regardless of the warrant.

On a change of control, I believe that the Trust shares are worth $50 (accreted value + redemption price of unexercised warrant) and payment can be sought...but,
if the commons get paid 90% in stock, no change of control occurs. I don't really understand the disposition of the warrant in this scenario, and I speculate that the Trust continues with the debt being assumed by the purchasing company.

Dave no problem. I got fucked big time on this and I really prefer no one else does also.

What has me somewhat confused though is that both the trustee and the lawyers representing the trust are unaware of the publicly traded stock.