Lehman Brothers Financial SA (LEHNQ)

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in bankruptcy, when a company allocates NOLS to stockholders for a dollar amount per share, what is the process

The process of allocating NOLs to stockholders in bankruptcy involves several steps, including the following:

1. Determining the amount of NOLs available: The first step is to determine the amount of NOLs that the company has. This is calculated by subtracting taxable income from taxable losses.

2. Allocating the NOLs: Once the amount of NOLs has been determined, the next step is to allocate them to stockholders. This is typically done on a per-share basis, which means that each share of stock will receive a certain amount of NOLs. The exact amount allocated per share may be based on various factors, such as the company's financial performance and the number of shares outstanding.

3. Issuing NOL certificates: After the NOLs have been allocated, the company will issue NOL certificates to stockholders. These certificates represent the NOLs and can be used to offset taxable income in the future.

4. Filing with the appropriate authorities: Finally, the company must file the NOL certificates and any other relevant documentation with the appropriate tax authorities. This will allow the company to claim the NOLs on its tax returns and offset taxable income in the future.

what are NOL certificates to stockholders in bankruptcy?

NOL certificates in bankruptcy are certificates issued to stockholders that represent a portion of the company's net operating losses (NOLs). These NOLs may be used by the company to offset future taxable income, reducing its tax liability. The allocation of NOLs to stockholders is typically done through a bankruptcy plan of reorganization and is subject to tax law and the terms of the bankruptcy court. The process of allocating NOLs to stockholders involves determining the value of the NOLs, determining the number of shares to be issued, and distributing the NOL certificates to the stockholders.

wow! NOL certificates eh???