As many know, Catz gets frustrated by "myth and lore" as well as the same question asked over and over and answered. So to those ends, I’m posting this.
I’ll update it from time to time with changes, corrections, etc. This is version 1.0 -- future versions will REPLACE this information with updated information.
Disclaimer: I am writing this with the best information that I know. This is not investment advice, nor is this to be taken, in any way, shape or form, as a personal liability. You should be consulting a professional, an accountant, a tax specialist, your broker/bank, a palm reading psychic, and/or anybody else professional you think you may need to make a full decision here. {See
You and you alone are responsible for reading the entire Disclosure Statement, and the ballots, and making a personal choice. Do not rely in my input here for anything more than pure 'For your information' and accept that it may be totally incorrect. I believe it NOT to be incorrect, but you must decide on your own.
You and you alone are responsible for ensuring that your vote is cast, and/or releases granted... Eg, Getting a ballot from your broker/bank. Returning it to the RIGHT PLACE {and if you are returning it to KCCLLC you are definitely WRONG}, ensuring it was cast appropriately, etc, etc. It's all your personal issue. Not mine. Not any online board.
In short, I owe you nothing if you rely on any of this.
1) I own "xxxx" version of WMI securities, will I need to vote, can I vote, etc?
Yes, all classes of WMI securities will vote this time. WAMUQ (commons), WAMPQ/WAMKQ (preferreds), WAHUQ's (PIERS) will all vote this time. "Last" two times, only commons didn't vote. This time they do. AND NEED TO. See further.
And yes, absolutely you NEED to vote this time -- at least for releases, see further.
2) I own multiple securities, or have multiple accounts, how many ballots do I need to fill in?
Basically, for every different security, in different account, at a different broker -- is a separate ballot received from your broker. Multiple types of securities will be separate ballots. Multiple brokerages will also be separate ballots, etc. So you might be getting packets from a bunch of sources, or multiple packets.
Count them up. Cross reference. Make sure you got one for each.
And YES, you need to vote them (and release) individually -- do not summarize the stuff. For each ballot you get, vote it separately.
And YES, you are supposed to vote the same security the same way. If you hold WAMUQs in separate accounts, they all are supposed to be voted the same way. If you hold more than one type of security, say WAMUQs and WAMPQs, you can vote them differently.
3) When will I get my ballots?
Soon, very soon. It's up to each broker, and some hire third-parties to do it, to mail them, etc -- and mailing takes varying time, etc.
4) What is the most recent set of dates regarding Disclosure Statement, Voting, POR Confirmation, etc.
The ever-changing and updated calendar is here --
www.my.calendars.net/wmi/ Jan 13, 2012 the Disclosure Statement was approved -
www.kccllc.net/documents/0812229/0812229120113000000000016.pdf - warning, it's huge -- 69mb and 1647 pages.
Feb 9, 2012 is the date that "Master Ballots" -- for voting FOR OR AGAINST the PLAN.... are due back from the BROKERS to KCCLLC. {Technically you don't have to release by this date, but most people WILL both "vote" on the plan, and choose to grant the releases} -- {But read further, your broker probably has an earlier date for shareholders to vote via them.}
Also, Feb 9, 2012, is the official "date of record" for those holding securities -- any trades after this are, IMHO, "Twilight Zone" trades -- see
#37 below... From the latest Disclosure Statement, PDF page
#13 --
The Securities Record Date shall be set as the same date as the Voting and Election Deadline (i.e.: February 9, 2012) for determining which holders of Claims in Class 2 (Senior Notes Claims), Class 3 (Senior Subordinated Notes Claims), Class 14 (CCB-1 Guarantees Claims), Class 15 (CCB-2 Guarantees Claims), Class 16 (PIERS Claims), Class 19 (Preferred Equity Interests), and Class 22 (Common Equity Interests) are entitled to vote on the Plan, as well as for purposes of determining which holders in Class 21 (Dime Warrants) are entitled to make elections with respect to the Plan.
{Commons = WAMUQ, Preferreds = WAMPQ/WAMKQ, Dime = DIMEQ}
Feb 16, 2012 is the Confirmation Hearing.
Feb 28, 2012 is the "Master Ballot" - "Release" deadline. PERIOD. {But read further, your broker probably has an earlier date for shareholders to vote via them.}
Feb 29, 2012 is the current 'assumed' date that Bankruptcy Exit would occur {eg, the Plan of Reorganization is executed}
5) I want to read the Disclosure Statement, how can I do that?
It's here - as an OCR,
www.scribd.com/doc/78208722 {It's also on KCCLLC in the original, official format}
And your broker should, in the voting materials, provide you a copy -- hardcopy on paper, or more likely on CD.
6) Why are there two dates for voting? What's the difference?
Feb 9th, is the date that voting for the plan is due back. Most people would also vote on releases then also.
Feb 28th, is the alternate date for Releases only. Your vote on the plan wouldn't count. But you still could vote on releases.
7) Is my deadline the above dates?
ABSOLUTELY NOT. These are the dates for the BROKERS. Your broker will establish a date, earlier that you must have your votes back to them.
In other words, Feb 9th and 28th above are the magic dates. But YOU will likely, nearly guaranteed, have an earlier date than those due to the broker.
8} What date is that?
It's up to each broker. No singular answer. Typically 3-5 days earlier for each date.
9) When would we know whether the court approved the plan?
The POR Confirmation hearing is Feb 16th, and the proposed exit from Bankruptcy is Feb 29th. So we'd have to hear between those dates whether the court approves the plan.
10) If I vote against the plan, am I screwed?
No. A vote against the plan is just that you don't agree with the plan.
11) If "opt out" of releases, am I screwed?
ABSOLUTELY. If you "opt out" of the releases, then you are saying that you are personally going to sue JPM, FDIC, etc. With your own money. "Opt out" also means no NewCo shares.
12) Can I change my mind later?
Probably not. Ask your broker. I think absolutely not.
13) If I vote against the plan, but I grant releases am I screwed?
No. They have nothing to do with each other. Granting releases (NOT "opting out") is the the deciding factor on whether you would get a distribution (NewCo shares), not whether you like the plan or not (and vote for or against the plan)
14) So how should I vote?
It's up to each investor. In general, investors probably want to 'give' the releases, but make their own decision on the "yes" or "no" on approving the plan. See above.
15) I've gotten ballots before (or FYI info for Commons), I've ignored them, it's just a pile of paperwork. Does it matter this time?
ABSOLUTELY it matters. If you don't grant the releases in time, then you get no NewCo stock. Period. You MUST actively return ballots with the release election to your broker.
16) What do you mean by "grant releases in time"? Can't I just wait and give my releases later, say 6 months or a year from now?
ABSOLUTELY NOT. Due to IRS and Tax Law regulations, Releases must be granted by the day before exiting bankruptcy. And your broker will need a few days before then to process your release elections.
17) What happens if I don't vote, or don't grant releases by the deadline - that my broker establishes.
You're on your own. No NewCo shares. And your old shares cancelled. Have fun. You have been warned over and over.
18) I'm going to be out of town, in the hospital, my dog ate my ballots, what happens?
You have been warned. Figure out an alternative.
19) Why can't I just not bother with the releases and get some 'default' here?
Because the laws require an "active" vote for a release. One can't, legally, be obligated to a release by default.
20) I have never gotten ballots before, or not in time, or I've just invested since the last voting and not sure if I'll be getting ballots, etc.
Once ballots start going out {it'll be obvious on the boards as people receive them} you should receive them as well. BUT, if you don't, you must IMMEDIATELY contact whomever you bought your shares from and give them KCCLLC's contact information and DEMAND -- over and over if required -- to be allowed to vote via the company that sold you the shares.
21) I don't want to do that. Seems like a hassle. I'll just download the ballots of the internet and mail them to KCCLLC.
Fine. Dumb idea. Won't work. Never has worked. Thank you for giving up your NewCo shares to me and the others. You absolutely have to return ballots, or vote, however the broker makes you do it via the broker. Period.
22) My broker is clueless, etc.
Not our problem that you chose a clueless broker. Or the broker you chose, turned out to be clueless. See the information about having them contact KCCLLC. The EC went as far as to issue a press release on this subject. Sorry to be blunt, but posting rants about this situation isn't helping you and a waste of time.
Here's the press release about it:
finance.yahoo.com/news/...-Provides-prnews-3530877012.html?x=0 Don't ignore this issue. It's real for many. And after-the-fact whining, or even current whining, isn't going to fix your problems.
Only YOU and your BROKER can fix any problems.
23) I'll contact KCCLLC myself. Won't that work?
No. Won't work. Hasn't worked before. Best you might be able to do is to give KCCLLC the number of your bank/broker and have them call. But that's not the way it's supposed to work.
24) Why all this hassle?
Nothing is easy in bankruptcy. And nothing is easy for those who invest in bankrupt securities, especially overseas when using a bank who uses a broker, etc. It ought not to be this hard. But it is. Buck up and live with it, and do something to make sure you're able to vote, especially to grant releases.
25) What happens to my votes, especially for releases, if the Plan is not confirmed (approved)?
The Plan can be modified further, as long as your class isn't made "worse", then your votes count as-is. If a given class is made "worse" by a change in the plan, you get to vote again -- only those classes. Let's not take this hypothetical further -- it's really out there.
26) This is all too complicated for me, or English is not my primary language, I failed reading comprehension in school, I have a head injury, or otherwise.
Hire a professional. An accountant, a lawyer, etc. Don't ignore this.
27) What about getting my advice from an on-line forum of amateurs.
Bad Juju if you don't do your own Due Diligence. You really ought to read the Disclosure Statement, the ballots you receive, and contemplate. That's what they are there for. To "Disclose".
See my disclaimer above, and my signature below. This is all IMHO -- In my humble OPINION.
28) My tin foil hat, that talks to me, says the box for "opt out", that I plan to leave blank, is going to be checked by some nefarious alien {hired by Rosen}, what do I do about that?
Consider voting on-line and/or via phone {they record that stuff} if your broker allows it. On-line voting will give you a confirmation of your votes. If you are required to mail it in, and your tin foil hat is worried about it, then write on the ballot "I did not check the 'opt out' box, and I do not want it 'checked' for me"... and/or write a notarized letter, etc. Whatever it takes for your tin foil nature to feel better about things.
Other past experiences also include being able to go into the local branch of your broker, and vote in-person -- they record it using their computer, make the appropriate elections, and you can ensure it that way.
In short, you must talk to your broker to calm your tin-foil.
29) What happens when I vote to my shares?
Your shares are supposed to be 'locked' (fixed) from trading at that point. The broker is supposed to move them to what is technically called a Contra-CUSIP -- like a 'tag' for indiciating how you voted. That stays 'locked' until the plan is approved and executed, and NewCo shares are issued.... or the plan doesn't get approved {see above}
30) What happens if my shares don't get locked when I vote?
I'd be darned worried. That's a huge red flag and I'd be asking my broker post-haste why not.
Seeing your shares "locked" in your account is a GOOD THING, it means your vote was cast and properly handled by your broker.
31) I want to play games during the "Twilight Zone" period -- playing trading games after the various 'voting periods' -- selling or buying shares, etc, etc. What happens with those shares?
By definition, the "Twilight Zone" brings mysterious, and unanticipated outcomes. You are on your own if you play such games. Nobody can be for sure. ("Twilight Zone" -- it's an American-ism... from the TV show of the late 1950s to early 1960s -- ergo,
en.wikipedia.org/wiki/The_Twilight_Zone }
The Twilight Zone dealt with bizarre and non-expected circumstances, as a story line.
"Each episode (156 in the original series) is a mixture of self-contained drama, psychological thriller, fantasy, science fiction, suspense, or horror, often concluding with a macabre or unexpected twist."
99) I only skimmed this. What happens now if I post a question that you have already answered?
You get full wrath and scorn from me and from others. And I hope they just reply with "See Catz #xx" and are not nice to you either.
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That's it for now. Look for an updated version later. This is Version 1.0
...Catz
Disclosure: Catz owns all securities -- WAMUQ, WAMPQ, WAMKQ, WAHUQ, and DIMEQs. This is written, intentionally as 'agnostic' to all the securities.
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