The distribution of funds will commence with $7bn to parties-in-interest on account of their allowed claims and the distribution of substantially all of the stock in the reorganized company to equity holders.
The newly reorganized company will operate as WMI Holdings, which will consist primarily of a wholly owned subsidiary of WMI, WM Mortgage Reinsurance and will be funded by a $75m contribution from certain WMI creditors.
The primary business of WMI Holdings will be initially a legacy reinsurance business that is currently operated by WMMRC.
Access to a $125m senior credit facility will be provided for working capital and permitted acquisitions and originations in the financial services sector.
WMI Chairman of the Official Committee of Equity Security Holders and a member of the Board of Directors of WMI Holdings Michael Willingham said the equity holders of WMI will have the opportunity to benefit from an ownership interest in the reorganized company.
"The new Board of Directors will form a Corporate Strategy and Development Committee to begin exploring opportunities available to the Company to enhance the value of the reorganized Company’s assets for the benefit of the company’s new shareholders," Willingham added.
The Board of Directors of WMI Holdings will also include Diane Glossman, Mark Holliday, Gene Davis, Timothy Graham, Steve Scheiwe, and Michael Renoff.
