Bopfan: Now that the confirmation order is irrevocable I expect to see an 8-K setting forth incentive awards for the BOD. I can't imagine capitalization can occur after the BOD gets its option grants; if it did, the strike price would be so high the board members would not be able to capture the rise in value.
Explicación de la importancia de las opciones/incentivos de la Junta Directiva WMIH:
My expectation is that stock options will be delivered BEFORE capitalization. Here's why: if the strike price of an option is $1.25, then if after the options are awarded the stock goes to $15, then MW et al. get $13.75 per share, so if MW has 1MM shares, then he gets $13.75MM. However, if options are issued after capitalization when the stock price is $13.75 and the strike price is $15, then MW and the other board members won't get nearly the return. If MW had 1MM shares when the strike price was $13.75, then @ $15 MW makes $1.25 per share or $1.25MM.
Kingedxxx: At this point, nobody really knows what is going to happen except that WMIH is trying to find a way to utilize its biggest asset which is its NOLs. So far, there have been a few ideas on how that could happen.
Does that mean cash injection via capitalization in some form? If so, how much?
Does it mean that retail will somehow be forced out first?
Does it mean that WMIH will only use some of its current cash and maybe a portion of its line of credit? (Can't do much with that IMO)
Can WMIH even find a viable company with reasonable profits to make use of those NOLs? Can they get that company without paying too much of a premium for it to even make sense?
I do know this much. The four hedgies, AAOC, wanted the reorganized company for themselves and they were willing to give up their equity investment in preferred and common (if they had any common) and were willing to possibly lose a little on TPS holdings (depending on how much recovery JPM was paying in the original deal.) They were willing to risk IT buy sellling more senior notes to get the majority of the Piers and even made sure that the waterfall stopped with Piers. So, these hedgies obviously saw some value with owning reorganized company to go through so much to get it. Again, it sure looks like they had some plan to utilize those NOLs. At this point, we can only wait it out and hope to benefit along with those hedgies.
