I would like to see the PR or filing that states. "KKR has stated they can not find a suitable acquisition because of the nol's" as you just stated in this post.
What I remember is gene Davis saying it was complicated. Keep in mind he said this before the reincorporation into Delaware allowed WMIH to increase equity to 3.5 Billion to give shares to the CTG to protect the NOL's if a deal bigger than 450 Million is executed triggering the exchange of Series B Preferred shares for common equity, and/or KKR turns in the stock warrants. The CTG will have to be issued equity shares on an algorithm basis to protect the NOL's
CTG is comprised of approx 185 M shares of WMIH. This group was formed at exit as a 5%shareholder group that controls the validity of 6 Billion in tax attributes known as NOL's. When I get to my pc later, I will be happy to put up the language of the Treasury rule that WMIH has referred to that contracts the CTG protecting the NOL's.
CTG will have to be issued WMIH shares to counter-balance the issuance of conversion shares. If WMIH sells more Preferred shares and only uses CASH to acquire a company (under 450M) then they do not have to further dilute WMIH shareholders by issuing shares to the CTG.
Gene Davis made the statement because WMIH had not raised the 600M in Preferred financing yet. Incorporated into Delaware yet.
Did not have the cash, nor the ability to issue more shares to the CTG protecting NOL's because of Washington share (500M) structure did not allow it.
Now WMIH shareholders are in a much better position now.
~Fish~
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