Replies to post #51425 on Lehman Brothers Financial SA (LEHNQ)

[rlinterests]

This allowed the NOLs to be used during the liquidation.

I thought NOL's were used to offset taxes on PROFITS.

If so, then how much profit is LBHI making during this liquidation?

Heck, I didn't realize LBHI was doing that good.

I wonder what our profit projections are for the next 3 years.

[keyownknee]

Thanks for your message, Joe.

Let's leave aside the whole COD question and focus on change of ownership. In bankruptcy, 382 seems to be slightly different. I could be wrong but it does not seem to guarantee shareholders any particular % of the company. Instead, it is the shareholders and the creditors together who must retain 51% in any merger after exiting BK.

I am surely missing something but I do not see where it says that the creditors can't own 100% of the new company. This would not count as "change of ownership" in a BK. Later, the new company might give up no more than 49% in post-BK mergers to take advantage of NOLs. That's where the change of ownership rule would come into play.

What am I missing?

[wayne49]

Ha! Karma Joe is at it again. Section 382 states 49% of the new equity can be transferred to creditors. 51% as some say like LD have to be retained by OBS. So, at the least 51% of NOLs will go to OBS.

Also, Once they are ready to exit, they will use 381 to Exchange the remaining debt on the entire liab. subject to compromise fro new equity and thus the entire line item will be in "satisfaction."

NOLs will not be used for cancellation of debt.

Karma Joe dont have a clue on what he is talking about.