Chemtura Corp (fka CHMT)

[stoman23]

Not entirely true Askwhy. It's 50% of existing shareholders OR creditors, not just shareholders.

From the court docs, no section 382 limitations apply if:

At least 50% of the stock in the corporation, after the ownership change, is owned by existing shareholders, creditors that held debt of the corporation for at least 18 months prior to announcement of the bankruptcy case, or ordinary business creditors.

In theory, that means they could swap all debt for equity with the creditors, and carryforward the NOL's (since the creditors would own 100% of 'new' stock).

I don't believe this will happen, but it is a possibility.