Disclosure Statement says they will only have $50 to $80 millions of NOLs. How can judge believe that?
The impact of the Net Operating Losses (NOLs) to the positive equity of the Debtors has not been included within the Debtors’ Disclosure Statement. Currently the Debtors have not disclosed the NOLs, but they must be worth at least hundreds of millions to the Debtors. In the CIBC World Market Report, the Net Operating Loss Carryforwards for the Debtors was $350,000,000 based upon $1 billion of net operating loss carryforwards at a 35% tax rate [The Merger Between Abitibi & Bowater: Necessary, But Not Sufficient - November 19, 2007]. The distribution of this value needs to be assessed inside the Plan Disclosure Statement or it cannot be considered to have adequate information.
If you add next 5 years NET EARNING (NOT EBITDA) and take 35% of that you still come up with more then $350 million...
'Courts of bankruptcy are essentially courts of equity, and their proceedings inherently are proceedings in equity.'
