and this is were shldq stockholders hope to land:
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For companies that have filed Chapter 11 bankruptcy, however, there are two exceptions to that restriction.
Under one, the cap on net operating loss use is calculated after the deal, when the market value would likely be higher.
The other option allows the combined company unlimited access to those tax assets. But for the combined company to qualify, half of its stock must have been held by creditors and shareholders who held the target company’s debt for at least 18 months prior to the Chapter 11 filing or whose debt “arose in the ordinary course” of the target company’s “trade or business.”
The bid is intended to fit within the guardrails of the latter exception, the person familiar with ESL’s plans said.
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again, not a tax professional, but don't see how eddie can preserve his stockholder status in shldq and disenfranchise the remaining stockholders.
this has been the subject of the nols and tax credits on this board recently.
