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SEC Filings

T-3
WALTER INVESTMENT MANAGEMENT CORP filed this Form T-3 on 11/06/2017
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  3. Implied Valuation of New Common Stock, Mandatorily Convertible Preferred Stock and New Warrants Not Intended to Represent Trading Value of New Common Stock

The valuation of the Reorganized Debtor may not represent the trading value of the Mandatorily Convertible Preferred Stock in public or private markets and is subject to additional uncertainties and contingencies, all of which are difficult to predict. Actual market prices of such securities at issuance will depend upon, among other things: (1) prevailing interest rates; (2) conditions in the financial markets; (3) the anticipated initial securities holdings of prepetition creditors, some of whom may prefer to liquidate their investment rather than hold it on a long-term basis; and (4) other factors that generally influence the prices of securities. The actual market price of the Mandatorily Convertible Preferred Stock is likely to by volatile. Many factors including factors unrelated to the Reorganized Debtor’s actual operating performance and other factors not possible to predict, could cause the market price of the New Common Stock to rise and fall. Accordingly, the implied value, stated herein and in the Plan, of the securities to be issued does not necessarily reflect, and should not be construed as reflecting, values that will be attained for the Mandatorily Convertible Preferred Stock in the public or private markets.

In addition, the issuance of the Common Stock and New Warrants may adversely affect market price of the Company’s Mandatorily Convertible Preferred Stock, decrease the amount of earnings and assets available for distribution to holders of the Mandatorily Convertible Preferred Stock, decrease the amount of earnings and assets available for distribution to holder of the Mandatorily Convertible Preferred Stock or adversely affect the rights and powers, including voting rights, of the holders of the Mandatorily Convertible Preferred Stock.

 

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