Tax Attributes (NOLs) - WMIH, not WMILT
It has been asserted the up to $40 billion of NOLs will be used to "take care of escrows" when reconciliation and closeout takes place.
IMO, this assertion cannot be realized due to the nature of the WMILT (the liquidating trust of the debtor, settling claims and assets and will terminate at some point) and WMIH (the reorganized debtor, an ongoing public company holding the tax attributes of the the debtor, that has been capitalized in several actions and will possess a billion dollar of market value with essentially no debt.).
THE TAX FACTS:
WMIH is the reorganized debtor. It benefited from a very intricate loophole in the tax laws and regulations in order to get a PLR that supported a worthless stock deduction on the abandonment of WMB prior to the Effective Date that allowed the post abandonment days / 365 times the NOLs to yield the almost $6 billion in NOLs that were "unrestricted from the annual limitations of IRC 382" in the immediate time of a change in ownership.
These amounts have been disclosed in the DS, argued at a valuation hearing on WMMRC and, subsequent to emergence, disclosed, audited and SEC filed in 2012, 2013, 2014 and soon in 2015. The amount of the NOL from this has not changed.
WMILT is the liquidating trust. The liquidating trust of the debtor after the 7th amended confirmed plan, as disclosed, as approved by the voting classes in all regards. The WMILT is not an active entity with nondebtor business revenues and future expansion plans. It is, as the documents support, a liquidating trust. WMILT cannot use NOLS, including the $6 billion unrestricted NOL that followed WMIH as the reorganized debtor. WMILT cannot use any "higher NOL" (which IMO doesn't exist).
CONCLUSION:
NOLS ARE TAX ATTRIBUTES THAT ARE DIRECTED TO WMIH ONLY AND HAVE ZERO BENEFIT TO THE WMILT, EXISTING LT "INTERESTS," OR TO FUTURE TO THOSE WHO HOLD ONLY ESCROW MARKERS.
For those that sold WMIH and rely on the promise of recovery through escrows, with regards to the NOLS, there will be NO BENEFIT.
HAVE I TOLD YOU LATELY HOW MUCH I LOVE MY WMIH SHARES?
