October 16, 2010: A hearing is scheduled in bankruptcy court this Monday, October 18, for WMI's Disclosure Statement (DS). The DS must be approved by the judge before it can be sent to "interested parties" in the bankruptcy case in an attempt to pursuade them to vote in support of WMI's Plan of Reorganization. It seems likely that, with over 700 objections filed against the DS, one hearing may not be sufficient and that additional hearings will be needed. It seems unlikely that the judge would be prepared to issue a ruling on the adequacy of the DS before the Examiner reports the results of his investigation; that report is due November 1.
According to news reports last week, WMI has now received the bulk of its federal tax refunds: "Washington Mutual Inc said the U.S. Treasury department had deposited $4.77 billion in an escrow account as part payment of a tax refund settlement with the Internal Revenue Service" (Reuters, 10/13). Notice the term "escrow account". WMI pursuaded the judge to allow it to set up this separate account to receive the tax refunds. By doing so, the large cash refund will likely be able to be kept "off the books" in WMI's monthly operating reports, which will thus continue to show WMI with about $1.3 billion less assets than liabilities. This allows WMI to continue to claim that shareholders (equity) are "out of the money".
Maximunae:
Compararme con Bopfan no me hace justicia, tu en el fondo piensas que van a cancelar las acciones y eso no va a ocurrir, llevas meses quejandote de la Juez y a veces no demuestras la paciencia que debieras al estar en una BK. Ahora ya si que quedan pocos días para un primer informe que ponga todo en su sitio. La Juez no moverá ficha, Susman la destrozaría. De repente es como si nos olvidaramos que Rosen no dirije estre cotarro solo, el hace su juego y nosotros el nuestro que es mucho más sibilino, el de el se ve a leguas pero el nuestro... ese solo saldrá a relucir cuando Susman decida y eso a mi me vale.
