Exide Technologies fka EXTC

[stockanalyze]

that is the whole point. exide technologies can't wipe out curent shareholders this time around as the change in ownership will wipe out exide's 1.5 billion in nol, a lot of money for all of the stakeholders(in 2002 , the nol was only 1.5 million and was easy to take a hit on compared to the cost of equity).

exide technologies have to retain shareholders to get the benefit of 1.5 billion NOL's like aamrq did to preserve it's 9 billion in NOL. 1.5 billion is real money and mergers often look into it, and the first thing in many cases. i would have never invested in exide in 2002 as their assets were lower than liabilities (this time 80% higher assets) and the nol's in 2002 were only about 1.5 million compared to 1.5 billion. it is huge and really huge. look at american airlines merger, how the nol continues to be used.


on ammrq's 9 billion in NOL

"While the Debtors anticipate taking advantage of certain special rules for federal income tax purposes that would permit approximately $9.0 billion of the federal NOL Carryforwards to be utilized...." lots of rules in nol and they must have shareholders intact to preserve nol's, aamrq had to keep shareholders for the same reason


http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9934507