After a significant amount of research, Wamurape.org/
Document Explaining the Importance of Equity Committees
http://www.bayardfirm.com/
Enclosed below is a letter from the Washington Mutual Noteholders’
Response from Noteholders’
http://sites.google.com/
The trustee is currently deciding whether to grant the request and no decision has been made of yet. Unfortunately, it seems like the noteholders’
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/
Washington Mutual Asset& Liabilities Filing
http://www.kccllc.net/
http://www.kccllc.net/
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/
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/
http://www.uscourts.gov/
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/
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/
Prospectus
http://www.sec.gov/
If one looks at the prospectus, it shows that 10 million were originally sold, with a face value of 50 dollars. 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 116 dollars a share. 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. 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/
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/
Prospectus
http://www.sec.gov/
Information on WAMKQ.PK
http://www.quantumonline.com/
Prospectus
http://www.sec.gov/
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/
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.
For further questions regarding this, please visit WamuCoup.com or WamuRape.org
