Replies to post #69986 on Lehman Brothers Financial SA (LEHNQ)

[mellowbird]

The quote you posted comes from this document:

http://www.pepperlaw.com/uploads/files/taxupdate_2012_6.pdf

From what I can tell, the PLR allowed the debtor to issue an OBS the way Lehman did without triggering an ownership change. Why do you think this means the "CTs are gold"?

[jimmyt99]

I find it funny, Stox, that some of the folks were looking down rabbit holes that did not exist in the last two legacy plays. I'm just glad the good ones had the foresight and foreskin to play them all or, if not, to be here. The reward is soon to come.

In the meantime, relax and have a Sinatra.

Roll Tide.

[Docsavag]

Stox,

Read the first part carefully...I think this was released in reference to Lehman, not WMI.

IRS released PLR 2012280233 concerning the federal income tax consequences of the liquidation of a consolidated group (“Taxpayer Group”). Taxpayer Group had a consolidated NOL and subsequently, Taxpayer and several of its affiliates (“Debt- ors”) filed for Chapter 11 bankruptcy. Under the final bankrupt- cy plan (“Plan”), a plan trust was created and all of Taxpayer’s stock was cancelled. The plan trust provided for the issuance of one share to be issued and held for the benefit of each former shareholder consistent with their former entitlements. After the Plan’s effective date, Taxpayer, as the plan administrator, was to wind down and liquidate Debtor assets. Though unlikely, the Plan preserved the Taxpayer’s shareholders’ right to receive a distribution in proportion to their previous stockholdings. The Debtors will ultimately be dissolved.
The IRS ruled that, under Section 382(g), there was no owner shift where the stock held in the plan trust stock replaced Taxpayer’s stock. Further, claims retained and interests received by the Debtors’ creditors are not “stock” for purposes of Section 382.4


There was no "one share" created under WMI.


Doc