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Zitat charliendud...:
Eats ~ I'm not going to guess on what SNHs would offer or what equity's portion is of the Newco or what will happen next.
I will only say that if I was going to sell a house or a painting that I had inherited and I was unsure of its value, I'd get an appraisal first.
Whoever decided in late December that they want an audit firm to examine the WAMU books to find out what we have, it was worthy of the in-house legal folks to note in their billing.
We've been kept out of what WAMU actually owned and we were kept from keeping all those assets that went to JPM that should have stayed with WMI. If the EC now has the power to do an audit (and there's a $3MM set aside in the budget for it) then I say "git it done"!!
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Zitat det_sherloc...:
Since we're left to parse language and read between the lines, it's interesting that they keep referring to it as an "issue."
If it were simply an auditor engagement or an evaluation of which auditor to choose, etc., you'd think they would refer to it simply as "re auditor engagement."
Not repeatedly as an auditor engagement "issue."
One possibility is they've selected an auditor and are now dealing with client conflict of interest.
If so, I hope it's not an indication that they're trying to ram through an auditor who will 'play ball' with someone, rather than selecting the best and most unbiased auditor.
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Zitat observer410...:
The emerging entity, if deemed to be a continuing public entity at emergence, must have an audited opening balance sheet.
If so, there will be nothing other than the opening balance sheet. *****There will be no catch up on years 2008, 2009, 2010 and 2011 ~ those belong to the debtor. Newco is not the debtor, it is the reorganized debtor. There will be no procedures performed on any of the former WMI [and subsidiaries including WMB] assets or liabilities or on any of the transactions while in bankruptcy. IT IS OVER, DONE.*****
It could be consolidated [holding company and the subsidiary WMMRC] or they could be separate.
From the confirmed Plan and DS, we should look for $75M in cash [at holding company] and net $-0- at WMMRC [the trust and other assets are offset by the insurance reserves and the runoff notes].
The one asset shareholders should not expect to see, at least at the emergence balance sheet date, is a Deferred Tax Asset [DTA] for the tax % rate of the NOL carryforwards. The reason is simple, and not deceptive. The DTA can only be recorded to the extent that the Newco will be able to use the NOL amounts [in whole or in part] to off-set future taxable income.
As long as it is "more likely than not that the company will continue to be profitable, the DTA can be recorded."
Newco doesn't have any projections for taxable income, and a history of zero years. I don't believe it can open with a value for the DTA. What will be disclosed is the calculation of the DTA less a full "valuation reserve" until Newco meets this criteria.
Upon emergence, there no longer is WMMRC's projected income stream, so the $20M NOL per the confirmed Plan and DS will likely not be recorded as a DTA. That leaves the $50M Net Present value of the NOL for the enterprise value [a bankruptcy term].
We all know that the real NOL carryforward is incremental from $5.5B + $3.6B for tax refund contributions to WMB basis + $3.9 for the tax basis recording of the TPS exchange. There are some other items, and interest offsets, and it is likely that the FOOTNOTES to the opening balance sheet will spell out the NOL amounts.
It could also be that, due to the importance of the NOL added basis for WMI in abandoning WMB, that the debtor/Newco have or are planning to request a Private Letter Ruling update to add these two items to be included in the basis and resulting loss on abandoment. If this isn't done yet, the FOOTNOTE on the NOLs may simply state that such amounts are uncertain at this time.
Shareholders should not be surprised to see a net $75M in equity; almost exclusively consisting of the $75M cash settlement. The FOOTNOTES hold the NOL key for what hopefully someday will be "recorded" as DTA when Newco profitable operations makes it "more likely than not" that it will start to use the NOL carryforwards.
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Zitat charliendud...:
Agree, Det. That word raises flags for me, too. All three of those names mentioned are with the in-house counsel so it something they are dealing with.
It seems so obvious that the new BOD would immediately do an audit and the fact there's a line item in the budget for the audit so I'm not sure why those in-house folks would have "an issue".
One thing Willingham needs to do is get a PR person in place and keep investors aware of key decisions like that so we don't have to guess what is happening next. Throughout this past 3 years, we've had to scour billings to find out what else is going on outside of what is filed. Just not very shareholder friendly.
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Zitat charliendud...:
"It could be consolidated [holding company and the subsidiary WMMRC] or they could be separate."
What about the Liquidation Trust? Those subs going to the Liquidation Trust have cash and assets. Won't they audit those assets to determine their value for liquidation versus what the Debtors have provided?
Even though the Liquidation Trust is to pay the BK claims, doesn't any excess after all claims have been paid belong to the NewCo?
Even though you say there will be no audit of the prior years, won't these auditors need to review prior years to verify transactions that might affect the opening balance sheet?
Also, isn't the scope of the audit engagement up to those hiring them?
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Zitat okieskm:
Charlie didn*t they say that what money was left over from the liquidation trust would go to charity? Or was that something else?
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Zitat much.faster:
"...doesn't any excess after all claims have been paid belong to the NewCo? ..."
chalien, as i understand it, first the unsecured creditors were paid by the liquidating and litigating trust. then the preferreds, and evrything more will go to commons. newco will only have claims to the liquidating and litigating trust, if someone like some wahuq and dimeq are exchanging claims for newcoshares. am i wrong?
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ZItat charliendud...:
Yes, I forgot they made that comment, which seems ridiculous since the Litigation Trust is linked to the Liquidation Trust. Again makes no sense to me ... I need to read that section again.
As I just replied to Okie, I need to read that section again to break out all of the legalese to better understand those process.
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Zitatende
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