Replies to post #78452 on Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

No access to ruling. Just statements Lehman has filed.

>Net Operating Losses The NOLs of the LBHI Tax Group (including Debtor-Controlled Entities) are subject to audit and adjustment by the IRS and primarily expire in or about 2028. Substantially all of the LBHI Tax Group’s current consolidated net operating loss carryovers are attributable to the Debtors. The Plan provides for an orderly liquidation of the Debtors. As previously disclosed in the Company’s Quarterly Financial Report as of March 31, 2012 [Docket No. 29731], the LBHI Tax Group received a private letter ruling from the IRS in connection with the Plan going effective that stated (i) the liquidation of the Debtors for U.S. federal income tax purposes may occur over an extended period, and (ii) the reduction of the LBHI Tax Group’s NOLs as a result of the discharge of debt pursuant to the Plan generally would not occur until completion of the liquidation. Upon completion of the liquidation of the Debtors, all remaining NOLs of the Debtors will be eliminated.

Docket 29731 says this;

The receipt of final IRS rulings validating (i) an extended liquidation, (ii) the general timing of cancellation of debt upon completion of a Debtor’s liquidation, and (iii) the absence of an ownership change under IRC Sec. 382 protection, pursuant to the Plan;

There's that word liquidation again. I can't see how anyone can argue that this is anything but a total liquidation. I from what they write "all remaining NOLs of the Debtors will be eliminated."

That is pretty clear to me.