Walter Investment Management (WAC) Reports Q2 Loss of $2.58/Share

Walter Investment Management (NYSE: WAC) reported Q2 EPS of ($2.58), versus ($13.68) reported last year. Revenue for the quarter came in at $208.8 million, versus $187.5 million reported last year.

Debt Restructuring Initiative

As previously announced, the Company has engaged legal and financial debt restructuring advisors and has been reviewing a number of potential actions to reduce its leverage.

On July 31, 2017, the Company entered into a Restructuring Support Agreement with lenders holding, as of July 31, 2017, more than 50% of the loans and/or commitments outstanding, or the Consenting Term Lenders, under the Company's Amended and Restated Credit Agreement, dated as of December 19, 2013, or the Credit Agreement. As set forth in the Restructuring Support Agreement, the parties thereto have agreed to, among other things, the principal terms of a proposed financial restructuring of the Company, which will include an extension of the Credit Agreement's maturity until June 2022, and which will be implemented through an out-of-court restructuring and, in the absence of sufficient stakeholder support for an out-of-court restructuring, a prepackaged plan of reorganization under Chapter 11 of Title 11 of the United States Code.

The Restructuring Support Agreement contains a number of conditions and milestones, including reaching an agreement with the holders of 66⅔% aggregate principal amount of the Company's 7.875% Senior Notes due 2021 to a restructuring support agreement consistent with the terms specified in the Restructuring Support Agreement. The Company and its debt restructuring advisors continue to negotiate with the financial and legal advisors to ad hoc groups of holders of the Company's indebtedness under the Company's Senior Notes and Credit Agreement, as the Company seeks to obtain sufficient stakeholder support for a comprehensive de-leveraging transaction.

There can be no assurance as to when or whether the Company will satisfy the conditions in the Restructuring Support Agreement, including obtaining requisite support from various stakeholders for the restructuring, whether the restructuring will be successful, the effects on its business, or the Company's ability to achieve our operational and strategic goals.

For earnings history and earnings-related data on Walter Investment Management (WAC) click here.

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