messages.finance.yahoo.com/Stocks_(A_to_Z)/...amp;frt=2#709692
Transcript of BR BEGGING for PJS valuation:
BR: Let me first start off with the EC. I think it’s important to note that while a lot of people sit in this courtroom, and the EC gets it first because they were the first ones who stood up, and they talk about the value of WMMRC and they all want to say what they think Blackstone didn’t do and how Blackstone didn’t respond to something the court may have said. Your Honor, the debtors believe that Blackstone did the correct analysis. They believe they were responsive. But what’s most important, is that no one has anything to dispute it.
PJS has been the retained professional of the EC since it was formed. They have drawn a monthly stipend from the debtor’s estate. PJS has never, ever, said that the analysis is incorrect. And Your Honor, as part of the confirmation process, we WILL take discovery of the EC and PJS. But as far as we know, YH, that everything we’ve been told… And there has been dialogue between debtors and the EC, there is no one that disputes the valuation by Blackstone, notwithstanding the fact that they stand here today.
Judge (cuts off BR): well I think they all do. We’re not at that point yet.
BR: I agree with that Your Honor. But everyone wants the DS to say something that doesn’t exist is my point. They want Blackstone to say I gave you valuation but I’m wrong. But Blackstone isn’t doing that. The debtors are not asking Blackstone to do that. The debtors stand by the analysis that has been performed. And to the extent that something comes out of the process, we’ll deal with it. But if somebody has something throughout every comment here today, if somebody has something that they would like to put in DS, give me the words. If its Mr. Steinberg that wants to stand up to say something that LTW…….. The debtors disagree. I’m happy, the debtors are happy, to move this forward. But nobody wants to say what they want included. So, Your Honor, I start from that premise. If somebody says that there’s an additional value to WMMRC, other than supposition, we will include that in the supplemental DS. We don’t care Your Honor, we’re not trying to hide anything.
Judge (cuts off BR): What about the value of the non-debtor entities??
BR: All of that is already reflected by way of the dividends that flow up to the debtor’s estate. All of that is in the opening balance sheet of the Liquidating Trust. If someone wants a breakdown of that Your Honor, we will go through the brain damage to do that and we will include it. It doesn’t matter, the number is already there. If they want to break it down, so be it. It doesn’t matter, we will include.
Again, Your Honor, I go back to the valuation. If PJS would like to provide us with alternative language to include in the supplemental DS about what value PJS on behalf of the EC thinks is appropriate, we will include that valuation that PJS and the EC thinks is correct. But to date, Your Honor, we haven’t seen anything.
again, BEGGING, just to make sure he only values what PJS knows instead of ALL assets of the debtors.
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Zitat von Bopfan dazu:
The true valuation of WMMRC resides in its potential, which is all speculative. The $160MM or so is really just seed value, an option. In reality the value will be what will the SNs do with about $5B cash and $32B in tax benefits. Answer: they'd do what Warren Buffett did with Goldman 2.5 years ago, but they'd have more to offer.
As I've said before, $5B in cash in the hands of a bank is worth more than it would be to just about anyone else because of the power to borrow at the Fed window. At the Fed window $5B magically becomes $50B for the bank-acquirer to use to fund its investments. Even a modest return of say 20% would be about $10B. With that the old WMI debt could be serviced and the holders of that debt (senior noteholders and the hedge funds) would have an equity stake in the new concern that's generating $10B ANNUALLY. Oh, and we didn't even discuss the power of the tax benefits to reduce the taxes on these fantastic gains.
The SNs are very sophisticated, so something like the foregoing is afoot though I doubt very strongly it has been finalized because that would create a paper trail which the EC would be all too happy to provide to the court.
All the SNs need to do is get Walrath's signature on a confirmation order and they will put something like the aforementioned scheme in motion. As of now, Rosen is telling the absolute truth (his law license depends on this) when he says WMMRC has a market value of $160MM because nothing's finalized it is very difficult for the EC to prove value beyond the $160MM in seed value.
However, and again, I think the court will determine that the waterfall reaches preferreds (we are exceedingly fortunate that we are only about $300MM away from A>L) even by a nose. If I'm correct about the real value of WMMRC, and the court rules the waterfall reaches preferreds, you can see that common is not only in the $, but the big $, even without going after the FDIC and JPM.
You can also see why I suggested the fallback position of of treating the SNs/Hs as creditors, with preferreds owning WMMRC and common having a residual power to depose preferreds if WMMRC's value exceeds a certain threshold.
ZItatende
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MfG.L:)
"Mit der Dummheit kämpfen Götter selbst vergebens"
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