Mr Cooper Group Inc (COOP)

[Large Green]

"NOL" is still good even with cancelling WAMUQ stock? Does anybody know for sure as this find is not good for common if true?

Stock Ticker: WAMUQ.PK
This is the common stock of Washington Mutual. This probably has the worst probability of any recovery unless there is a buyout or a significant change in assets. For some reason there is an impression that common stock must be maintained to carry forward the company’s considerable net operating losses. However, based on the information that has been gathered this is not true. These stocks currently have no representation at the bankruptcy court.

Information regarding NOL’s
http://findarticles.com/p/articles/mi_qa3857/is_199801/ai_n8786997

Hopefully, this article has been educational and will no longer allow persons to misrepresent the value of currently traded Washington Mutual stocks. This information was gleamed from public sources and was not reviewed by an attorney, so please do your own due diligence and read the information that has been provided.

For further questions regarding this, please visit WamuCoup.com or WamuRape.org


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zardiw Posted: Friday, December 26, 2008 7:56:34 PM

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Ok, explain how removing ALL the 'owners', i.e. current shareholders, does not constitute an 'ownership change', which negates NOL's.......z
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Mike Posted: Friday, December 26, 2008 8:28:04 PM

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Z
if you read the article at the bottom it says that the creditors can become the new owners under the bankruptcy exception. As long as the creditors become the new owners, then there is no need for common stock. This isn't the only article I have seen on the subject but it is definately the most straightforward.

Bankruptcy Exception
There is an exception to these rules for bankrupt corporations under Section 382(1)(5). This exception would apply if a stock-for-debt exchange was approved by a court when: (1) Deadbeatco was under the jurisdiction of a bankruptcy court in a Title 11 or similar case (i.e., receivership, foreclosure or similar proceeding in federal or state court) immediately before an ownership change; and
(2) the shareholders and creditors of Deadbeatco own fifty percent of the value and voting power of Deadbeatco's stock immediately after an ownership change (the "continuity of ownership" test).
Only stock received by "qualified creditors" is counted to determine whether the fiftypercent continuity of ownership test is met. To be a qualified creditor, the indebtedness exchanged for the stock:
(1) must have been held by the creditor at least eighteen months prior to the date of filing of the Title 11 or similar case (most applicable to long-term debt); or
(2) must have arisen in the ordinary course of the trade or business of Deadbeatco and must at all times have been held by Deadbeatco (most applicable to trade creditors).
Only stock that is received by creditors in partial or full satisfaction of the prior indebtedness is counted to determine whether the continuity of ownership test is met. Stock received by shareholders or qualified creditors in return for new capital contributions is not included.
Special Rules Applicable to Bankruptcy Even if a stock-for-debt swap qualifies under Section 382(1)(5), there are several provisions that reduce the amount of pre-change NOL carryforwards that are available to Deadbeatco.
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