My statements regarding NOL's commenced with an observation that I saw little difference between this Exide BK filing and the prior BK in 2002. Net/Net: no secret stash of cash to keep commons whole this time around. By the way, I still have conviction in that scenario. Just like the Ad Hoc Equity team concluded, which was out of likely value, not overly conservative posture.
I never focused on E/ROW because they are not part of the BK and, as such, their NOL's are largely immaterial to any final, approved PoR regarding the debtor's estate. This is equivalent to the prior BK where E/ROW was also separated in the BK filing, but common shares were nonetheless cancelled.
However, when I thought about it, the E/ROW NOL's could be significant were Exide or E/ROW to be sold, subject to "change in ownership" regulations that govern carryover of tax losses, for which treatment varies by country of tax jurisdiction. During the prior Exide BK there was no sale or liquidation of assets contemplated during the restructuring process. However, the actions court approved in the Amendment 8 DIP docket have strong overtones of a sale, upcoming. So I asked for an opinion. Nothing more, nothing less.
