Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

Major problem with your theory. All NOLs will be wiped out by the cancellation of debt that vastly exceeds the dollar amount of NOLs. Also, the creditors have no rights to the NOLs. They have no incentive to let OBS keep them. For creditors to have ownership would mean a change of ownership away from OBS. IRS rules do not allow that. And also to do that the creditors would not be allowed to claim the debt cancellation loss on their taxes which is worth much more than the NOLs.

As stated in the disclosure statement that says they are only allowed to use the NOLs for THEIR (creditors)only as long in liquidation.

As previously disclosed in the Company’s Quarterly Financial Report as of March 31, 2012 [Docket No. 29731], the LBHI Tax Group received a private letter ruling from the IRS in connection with the Plan going effective that stated (i) the liquidation of the Debtors for U.S. federal income tax purposes may occur over an extended period, and (ii) the reduction of the LBHI Tax Group’s NOLs as a result of the discharge of debt pursuant to the Plan generally would not occur until completion of the liquidation. Upon completion of the liquidation of the Debtors, all remaining NOLs of the Debtors will be eliminated.

As I have said many times before, there is no pathway for the CTS or equity to see any recovery. If there was I would know about it.