Rock Creek Pharmaceuticals Inc. (fka RCPIQ)

[1manband]

What happens to the tax loss carry forward???

It disappears.

Contrary to what is often heard on the internet, NOL's of bankrupt companies have little to no value. In order to even have a chance to use them, another company would have to acquire all the equity of RCPIQ, and if they did that, they would also assume the MASSIVE debt and liabilities, as they cannot be separated. That is obviously not going to happen.

But even if it did, the NOL's are still almost certainly worthless. Why? Because the tax code (Section 382) severely limits their use by the acquiring entity. That is why you don't see profitable, tax paying companies acquiring bankrupt companies for the NOL's. Otherwise just about every successful company, such as Google or Microsoft, would be buying up lots of failed companies to use their NOL's. But you don't, because they can't.

The claim that a bankrupt company's NOL's are valuable (and thus the common stock has value) is one of the biggest falsehoods regarding bankrupt public companies there is.