The WAMU Settlement - final and unappealable
The Settlement and Allocation agreements are final and unappealable. The Trustee has the settlement proceeds and will soon release a notice to Certificateholders regarding the distribution process/timing. Shouldn’t proceeds be released in the October distribution?
What we know and is publicly available from the FDIC:
https://www.fdic.gov/bank/individual/failed/wamu-settlement.html (last updated on 09/25/2017)
On June 30, 2017, the Superior Court of Orange County, California entered an order approving the settlement, and that order became final and unappealable on September 5, 2017.
Under the settlement agreement, in exchange for releases from JPMC and DBNTC, the Receiver paid JPMC $645 million and issued DBNTC an allowed unsecured receivership claim of $3,006,929,600 on September 8, 2017.
As a result of the settlement, the parties dismissed certain lawsuits pending in the district court and an appeal pending in the court of appeals. These lawsuits had been stayed while DBNTC obtained approval of the settlement by the California state court.
Timeline:
June 30, 2017: The Superior Court of Orange County, CA entered an order approving the settlement.
September 5, 2017: The order became final and unappealable. Per the Settlement Agreement, we now have “Final Court Approval”. Not sure if we have “Final Allocation Approval” too.
September 8, 2017 through late September: Under the settlement agreement, in exchange for releases from JPMC and DBNTC, the Receiver paid JPMC $645 million and issued DBNTC an allowed unsecured receivership claim of $3,006,929,600 (est. value of claim is approx. $695 MM). We received confirmation, which is public information, that the FDIC made a distribution to the trustee in late September.
Settlement and Allocation Orders BOTH Approved:
There were 2 orders awaiting final approval. The FDIC stated that the “order approving the settlement” became “final and unappealable”. We received confirmation, which is public and posted on the OC Superior website, that both Orders have been approved. Therefore, “FINAL Court Approval” and “FINAL Allocation Approval”.
Approval Order Granting Verified Petition of DB which makes the Settlement Agreement and Trustee Agreement binding on the trusts and thus “Final Court Approval”.
Allocation Order which makes the Settlement Proceeds allocated per the Allocation Expert binding and thus “Final Allocation Approval”.
Lots more to read in the Commentary attached. The Deal list can be found in the Allocation spreadsheet (not sure if that is the final one but sure seems that way). Allocation is at the group level.
Contact us at 203-276-0672 to become a client and access all reports and attachments.
