Republic Airways Holdings Inc fka RJETQ

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2. Consequences to Holders of Existing Interests in RAH
Holders of interests in RAH, which are being cancelled under the Plan, will be entitled to
claim a worthless stock deduction (assuming that the taxable year that includes the Effective
Date of the Plan is the same taxable year in which such stock first became worthless and only if
such holder had not previously claimed a worthless stock deduction with respect to any Interest
16-10429-shl Doc 1190 Filed 11/16/16 Entered 11/16/16 18:59:04 Main Document
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in RAH) in an amount equal to the holder’s adjusted basis in the Interest. If the holder held its
Interest in RAH as a capital asset, the loss will be treated as a capital loss