Circuit City Group (fka CCTYQ)

[NASCOW]

Is there a site to follow document filing for the BK.


http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20100111&id=10976942

Recently a tax benefit was tucked into legislation late last year that broadened unemployment insurance and extended tax credits for homeowners. The provision allows companies of all sizes to apply losses in 2008 or 2009 to prior income over five years to receive tax refunds. The previous standard allowed them to apply losses back two years.

Chief executives and industry groups representing manufacturers, homebuilders and retailers pressed for that tax benefit, although economists expect businesses from across the economy to reap some gain.

Part of the money paid out as 2010 refunds is expected to be recouped in the next few years when businesses turn a profit and begin paying taxes again.

But some of the companies that plan to seek a refund will never pay tax, because they have no future.

The professionals who are liquidating bankrupt companies including Circuit City Stores Inc and Linens 'n' Things are going through the corporate books in anticipation of getting cash back from Washington. The refund money will be used to pay off creditors.

"What's a genuinely targeted stimulus to one person is a windfall to another," said Jack Butler, a partner in the corporate restructuring practice at Skadden, Arps, Slate, Meagher & Flom. He emphasized the law will provide capital and liquidity to many companies that are struggling to avoid bankruptcy.

"Where it becomes a potential windfall is in liquidating situations," said Butler.