Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

>>We got $150B+ in NOLs<<

The NOL balance is down to zero. Most holders of their bonds have taken their losses, meaning income to LBHI that needs to be recognized and offset NOL credits. Net operating losses is not the same as shareholder equity, meaning NOLs are not what LBHI falls short in paying off creditors. NOLs can only be generated from Net operating losses. Once LBHI exited BK and in to liquidation, no new NOLs could be generated.

This is not fairyland where you can make stuff up and wish it was true. Well, I guess you could because that is what you are doing. That is exactly what this lawsuit nonsense is.

Net Operating Losses
The NOLs of the LBHI Tax Group (including
Debtor-Controlled Entities) are subject to audit and
adjustment by the IRS and primarily expire in or
about 2028. Substantially all of the LBHI Tax
Group’s current consolidated net operating loss
carryovers are attributable to the Debtors. The Plan
provides for an orderly liquidation of the Debtors.
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. The
Company has filed with the IRS a request for an
extension of the ruling. All remaining Debtor NOLs
not previously utilized to absorb taxable income of
the LBHI Tax Group are expected to be fully utilized
to offset the discharge of debt on the final date of
liquidation of the Debtors.

Note that it doesn't say some, or most Nols. It says ALL.