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SEC Filings

10-K
DITECH HOLDING CORP filed this Form 10-K on 04/16/2019
Entire Document
 

Reorganization Items and Fresh Start Accounting Adjustments
The Parent Company met the conditions to qualify under GAAP for fresh start accounting, and accordingly, adopted fresh start accounting effective February 10, 2018. The Parent Company's reorganization items and fresh start accounting adjustments consist of the following (in thousands):
 
 
Successor
 
 
Predecessor
 
 
For the Period From February 10, 2018 Through December 31, 2018
 
 
For the Period From January 1, 2018 Through February 9, 2018
 
For the Year Ended 
 December 31, 2017
Gain on cancellation of corporate debt
 
$

 
 
$
556,937

 
$

Less: issuance of new equity to Convertible and Senior Noteholders
 

 
 
153,764

 

Net gain on cancellation of corporate debt
 

 
 
403,173



Less:
 
 
 
 
 
 
 
Legal and professional fees (1)
 
2,123

 
 
12,461

 
3,098

Write-off deferred debt issuance costs and discounts
 

 
 

 
34,406

Other expenses
 
603

 
 
3,378

 
141

Total expenses
 
2,726

 
 
15,839


37,645

Total reorganization items
 
(2,726
)


387,334

 
(37,645
)
Fresh start accounting adjustments
 

 
 
71,177

 

Reorganization items and fresh start accounting adjustments
 
$
(2,726
)
 
 
$
458,511

 
$
(37,645
)
__________
(1)
Professional fees are directly related to the WIMC Reorganization.
The Parent Company made cash payments for reorganization items of $11.8 million and $5.7 million during the period from February 10, 2018 through December 31, 2018 and the period from January 1, 2018 through February 9, 2018, respectively. There were no payments made for the year ended December 31, 2017.
3. Supplemental Disclosures of Cash Flow Information
The Parent Company’s supplemental disclosures of cash flow information are summarized as follows (in thousands):
 
 
Successor
 
 
Predecessor
 
 
For the Period From February 10, 2018 Through December 31, 2018
 
 
For the Period From January 1, 2018 Through February 9, 2018
 
For the Year Ended 
 December 31, 2017
Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
 
 
Cash paid for interest
 
$
87,389

 
 
$
7,437

 
$
93,327

Cash received for taxes
 
(938
)
 
 
(78
)
 
(72,982
)
Supplemental Disclosure of Non-Cash Investing and Financing Activities
 
 
 
 
 
 
 
Contributions to subsidiaries
 
2,013

 
 

 
184,474

Distributions from subsidiaries
 

 
 

 
4,474

4. Guarantees
Refer to Note 28 to the Consolidated Financial Statements for certain guarantees made by the Parent Company in regards to Ditech Financial and RMS. In addition to these guarantees, all obligations of Ditech Financial and RMS under master repurchase agreements and certain servicing advance facilities are guaranteed by the Parent Company. The Parent Company also guarantees certain subsidiary obligations such as agreements to perform servicing in accordance with contract terms.

F-95