FORT WASHINGTON, Pa.,
Jan. 17, 2018 /PRNewswire/
-- Walter Investment Management Corp. ("Walter" or the
"Company") (NYSE: WAC.BC) today announced that the United States
Bankruptcy Court for the Southern District of New York (the "Court") has approved the
Company's prepackaged financial restructuring plan (the
"Prepackaged Plan"). The Company expects to emerge from Chapter 11
by no later than January 31, 2018,
after the conditions to the Prepackaged Plan are satisfied, and the
Company is on track to complete its financial restructuring in the
first quarter of 2018.
As previously announced, the Company's comprehensive financial
restructuring plan is expected to reduce the Company's outstanding
corporate debt by approximately $800
million1 and create enhanced financial
flexibility. Walter's operating entities, including Ditech
Financial LLC ("Ditech") and Reverse Mortgage Solutions, Inc.
("RMS"), are continuing to operate in the ordinary course.
Proposed Board Appointments
In connection with the approval of its Prepackaged Plan,
Walter has also announced the proposed composition of its
post-emergence date Board of Directors.
The Walter Board will be comprised of nine (9) directors.
Current directors George Awad,
Daniel Beltzman, and Neal Goldman will continue to serve as directors
of the Company post-emergence. Messrs. 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.
The term of the new board members will begin upon the Company's
emergence from Chapter 11 later this month, at which time the
Company expects to supplement this press release with a formal
announcement of the Company's emergence and the installation of its
new board.
"We look forward to officially welcoming the incoming members of
our Board, who will bring proven track records and new perspectives
from both inside and outside our industry, and will play an
important role in helping guide our Company forward following our
financial restructuring process," said Mr. Awad, the current
Chairman of the Board of Walter. "Once formally appointed, I look
forward to working closely with them to create value as we advance
our mission of serving our customers throughout the homeownership
journey."
Mr. Awad continued, "I would also like to thank Walter's
outgoing board members for their service to the Company. Their
leadership was instrumental in building Walter into a diversified
mortgage banking company and they helped oversee the transformation
that is expected to position our Company for future growth and
success."
Additional Information
Additional information about Walter's financial restructuring is
available on the Company's website at
http://www.walterinvestment.com/restructuring.html or by
calling the Company's Restructuring Hotline, toll-free at
866-430-6844 or 1-646-795-6176 for calls originating outside of the
U.S. Questions can also be emailed to walterinfo@PrimeClerk.com. In
addition, court filings and other documents related to the court
proceedings are available on a separate website administered by
Walter's claims agent, Prime Clerk, at
http://cases.primeclerk.com/Walter.
Advisors
Weil, Gotshal & Manges LLP is acting as legal
counsel, Houlihan Lokey is acting as investment banking
debt restructuring advisor and Alvarez & Marsal North
America, LLC is acting as financial advisor to the Company in
connection with the financial restructuring.
About Walter Investment Management Corp.
Walter Investment Management Corp. is an independent
servicer and originator of mortgage loans and servicer of reverse
mortgage loans. Based in Fort Washington, Pennsylvania, the Company has approximately
4,100 employees and services a diverse loan portfolio. For more
information about Walter Investment Management Corp., please
visit the Company's website
at www.walterinvestment.com. The information on the
Company's website is not a part of this release.
Cautionary Statements Regarding Forward-Looking
Information
Certain statements in this press release
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act, as amended. Statements that are
not historical fact are forward-looking statements. Certain of
these forward-looking statements can be identified by the use of
words such as "believes," "anticipates," "expects," "intends,"
"plans," "projects," "estimates," "assumes," "may," "should,"
"could," "would," "shall," "will," "seeks," "targets," "future," or
other similar expressions. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors,
and our actual results, performance or achievements could differ
materially from results, performance or achievements expressed in
these forward-looking statements. Such statements include, but are
not limited to, statements relating to the Prepackaged Plan and
court-supervised restructuring process, descriptions of
management's strategy, plans, objectives, expectations, or
intentions and descriptions of assumptions underlying any of the
above matters and other statements that are not historical
fact.
These forward-looking statements are based on the Company's
current beliefs, intentions and expectations and are not guarantees
or indicative of future performance, nor should any conclusions be
drawn or assumptions be made as to any potential outcome of any
proposed transactions the Company considers. Risks and
uncertainties relating to the restructuring include: the Court's
rulings in the Chapter 11 case and the outcome of the Chapter 11
case in general; the length of time the Company will operate under
Chapter 11; risks associated with third-party motions in the
Chapter 11 case, which may interfere with the Company's ability to
develop and consummate the Prepackaged Plan or other plan of
reorganization; the ability to satisfy all conditions precedent to
the Prepackaged Plan; the ability of the Company to successfully
execute the Prepackaged Plan without substantial disruption to the
business of, or a Chapter 11 bankruptcy filing by, one or more of
its primary operating or other subsidiaries; the effects of
disruption from the restructuring making it more difficult to
maintain business, financing and operational relationships, to
retain key executives and to maintain various licenses and
approvals necessary for the Company to conduct its business;
increased legal and advisor costs related to the Chapter 11 cases
and other litigation and the inherent risks involved in a
bankruptcy process; the ability of the Company to comply with the
terms of the restructuring support agreements, including completing
various stages of the restructuring within the dates specified by
the restructuring support agreements; the ability of the Company to
maintain the listing of its common stock on the New York Stock
Exchange; and the ability of the Company to continue as a going
concern. Important assumptions and other important factors that
could cause actual results to differ materially from those
forward-looking statements include, but are not limited to, those
factors, risks and uncertainties described in more detail under the
heading "Risk Factors" and elsewhere in the Company's annual and
quarterly reports, including amendments thereto, and other filings
with the Securities and Exchange
Commission.
The above factors, risks and uncertainties are difficult to
predict, contain uncertainties that may materially affect actual
results and may be beyond the Company's control. New factors, risks
and uncertainties emerge from time to time, and it is not possible
for management to predict all such factors, risks and
uncertainties. Although the Company believes that the assumptions
underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate, and
therefore any of these statements may prove to be inaccurate. In
light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such
information should not be regarded as a representation by the
Company or any other person that the results or conditions
described in such statements or the Company's objectives and plans
will be achieved. These forward-looking statements speak only as of
the date such statements were made or any earlier date indicated,
and the Company does not undertake any obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events, changes in underlying assumptions or
otherwise. If the Company were in any particular instance to update
or correct a forward-looking statement, investors and others should
not conclude that the Company would make additional updates or
corrections thereafter.
Contact
Kimberly
Perez
SVP & Chief Accounting Officer
813.421.7694
investorrelations@walterinvestment.com
Or
Michael Freitag / Andy Brimmer / Aaron
Palash
Joele Frank, Wilkinson Brimmer
Katcher
(212) 355-4449
1 As compared to the amount of outstanding corporate
debt of the Company as of June 30,
2017.
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SOURCE Walter Investment Management Corp.
