Got Parlay?

[hfields]

MESAQ is a good play to consider:

1. Assets are geater than liabilities.
2. The OS saw entire capitulation before the Q was even attached, so most likely the sub .04 pricing is done.
3. They have already done a deal with bondholders to restructure their debt with Cash, one additional bond issuance, but most importantly they have already largely taken care of bonds with a DEBT FOR EQUITY CONVERSION. These shares have already entered the OS, so this is a very positive sign for holders of common stock.
4. They entered bk to get out of some bad leases/contracts to cut down on operating costs.
5. No massive amount of goodwill or intangibles on the balance sheet.
6. They wish to protect some NOL's.

**I hold both lehman's and wamu stocks...fwiw**

Little bit on NOL's (I'm sure you players already know this being in the wamu play, so just as a refresher.)

What must be done to preserve NOL's:

The exceptions to the limitations imposed on the use of NOLs are found in Sections
382(l)(5) and (6), and are known as the safe harbor provisions. Under Section 382(l)(5), NOLs
will not be lost as the result of an ownership change if that ownership change results from
consummation of a chapter 11 plan, provided that four conditions are met:

(i) under the plan, the historic shareholders and “qualified creditors” own at least
50% of the value and voting power of the debtor after the ownership change;

(ii) the debtor does not undergo a subsequent ownership change during the two years following consummation of the plan;

(iii) the debtor does not take a tax deduction for any interest paid or accrued during a period ranging from 3 to 4 years immediately preceding the
consummation of the plan in respect of debt that is later converted into stock pursuant to the plan; and

(iv) the debtor elects to rely on Section 382(l)(5).


http://www.abiworld.org/committees/newsletters/publicComp/vol6num1/Claims2.pdf

http://www.pepperlaw.com/publications_update.aspx?ArticleKey=1508