Replies to post #490930 on Mr Cooper Group Inc (COOP)

[hotmeat]

So if the NOLS are truly gone it will therefore have to be announced to the public,...correct?

Also, seeing that the NOLS are basically WMIH's only real asset, why would the Hedge Funds remain invested here?

[mordicai]

I can envision wmih nol being affected by assets coming back to wmih itself. But imo any assets coming back to the liquidating trust could not impact wmih nol because the nol belongs to wmih which is a separate entity. Any assets coming to the liquidating trust will be passed through to escrow holders and those individual holders will bear the tax consequences.

[stoxjock]

Great Post. Thanks for your lucid explanation. GLTU & GLTA.

[JusticeWillWin]

ron, your theory is deeply flawed, sorry to say that.

When the escrows/WMILT (the debtor's estate) receive a final payment (IF there is any), then WMIH can NOT book this same amount A SECOND TIME as capital gain, because WMIH did not receive this final payment and thus did not have this capital gain, but the WMILT. And neither is the WMILT owned by WMIH, nor has WMIH a stake in the WMILT

Your theory "magically" duplicates the amount of the final payment (again, if there is any)! Not possible...

NOLs are GONE with

"the Final Payment".

JPM paid FDIC-C on or before June 1st, closing the PAA with JPM's Indemnification payment on July 14th. The FDIC-C will push the funds to FDIC-R for distribution to "the Debtor's Estate" WMI-Escrow Holders to complete the "Change in Control" for "WMB and it's assets".

When "the Debtor's Estate" WMI-Escrow Holders realize "the Final Payment", when WMIH will 'Book' the Capital Gain against the Capital Loss and the NOLs are GONE.

The old Capital Loss will be re-Booked as the new offsetting Capital Gain. Hence; No Capital Loss, no 'gives rise to' NOLs.

The current 8-K [Value from the Hawaii Insurance Bond "Assets" which Old-WMI owns] can be 'Booked' against current NOLs, until "the Final Payment" is realized by Old-WMI, and 'Booked' by WMIH.


HLCE,
Ron