EUR 870.24 For Business Accounts Only

The Corporate Restructuring Report-Ditech Holding Corporation (DHCP)

On February 9, 2018, Ditech Holding Corporation (DHCP), formerly known as Walter Investment Management Corp. (WAC), successfully completed its restructuring plan and emerged from Chapter 11 bankruptcy. WAC had filed for bankruptcy under Chapter 11 on November 30th, 2017. The Company changed its name to Ditech Holding Corporation on the effective date. In connection with the Plan, senior note holders received 86.5% of the reorganized stock, whileexisting shareholders received the remaining 13.5% of the new equity (after accounting for dilution from convertible notes). The plan led to elimination of ~$800 million in debt.

We believe DHCP is undertaking a major transformation in its business model and capital structure, moving towards an asset-light subservicing model, thus allowing for reduced leverage. As DHCP transitions to fee-for-service model by selling MSRs through flow sales, we expect cash flows to improve. The improved cash flow, coupled with a strong balance sheet, positions DHCP to take advantage of growth opportunities in 218 and beyond. Higher focus on purchase origination vis-a-vis refinance shoud drive volume growth in 2018. The management continues to reduce costs and is guiding for an additional $125 million cost savings by 2019.