The U.S. Bankruptcy Court issued an order confirming Walter Investment Management’s Amended Prepackaged Chapter 11 Plan of Reorganization [Modified], and the Company anticipates emerging from Chapter 11 protection by January 31, 2018. The financial restructuring is expected to reduce the Company’s outstanding corporate debt by approximately $800 million.
In connection with the confirmation order, Walter Investment Management also announced the proposed composition of its post-emergence board, which will be comprised of nine directors: Current directors George Awad, Daniel Beltzman and Neal Goldman will continue to serve as directors. Frederick Arnold, David Ascher, Seth Bartlett, Claude LeBlanc, Thomas Marano and Thomas Miglis, who have each been designated by an ad hoc group of consenting senior noteholders, will also serve as directors.
As previously reported, “On the Effective Date, holders of Senior Notes Claims will receive, in full and final satisfaction of their Allowed Senior Notes Claims, their Pro Rata share of (i) New Second Lien Notes, (ii) Mandatorily Convertible Preferred Stock, and (iii) 100% of the New Common Stock issued on the Effective Date, subject to dilution by shares of New Common Stock issuable on conversion of the Mandatorily Convertible Preferred Stock and shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan and shares of New Common Stock issued after the Effective Date; provided that, if Class 6 (Convertible Notes Claims) is an Accepting Class, (a) 50% of the New Common Stock that would have otherwise been distributable to Class 5 pursuant to the terms set forth above, shall be distributed to holders of Convertible Notes Claims in accordance with Section 4.6(b) of the Plan, and (b) 50% of the New Common Stock that would have otherwise been distributable to Class 5, shall be distributed to holders of Existing Equity Interests in accordance with Section 4.9(b) of the Plan.” This mortgage loan servicer filed for Chapter 11 protection on November 30, 2017, listing $17 billion in pre-petition assets.
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