Replies to post #24796 on Sears Holdings Corp. (fka SHLDQ)

[Vilhelm_Bock_LLC]

Wouldn't the phrase "reorganization" below elude that SEARS (SHLDQ)is or has?


On February 8, 2019, the Debtors filed with the Bankruptcy Court a notice of filing of settlement term sheet with the with the Pension Benefit Guaranty Corporation (the “PBGC”), pursuant to which, among other things the Company and the PBGC have agreed: to terminate the Company’s pension plans; that the PBGC’s unsecured claim would be reduced to $800 million; the PBGC would receive a senior, secured non-interest bearing note in an amount of $80 million under a chapter 11 plan of reorganization of the Company (a “chapter 11 plan”); and the PBGC would release underfunding claims against the Debtors and withdraw its objection to the Going Concern Transaction and to support a chapter 11 plan that incorporates the agreed upon terms and is not otherwise adverse to the PBGC.

[MOCKBA]

Too many shorts spewing ashes and mumbling garbage here, rihht?
Dont listen to them folks! If you are spending all night on Valentines day here, then you have no life, because you are short!

[Kodi36]

Not true because of the nols they would have wanted the stock 2 and they can still do that under a 363 sale.

Income Tax
Considerations
of the Section
363 Sale
A Section 363 sale can
take the form of a sale of
the debtor stock or of the
debtor assets. The debtor
(and sometimes the buyer)
income tax attributes will
often influence the type of
transaction that is preferred
by each party.
For example, the buyer
may wish to keep the debtor
corporation intact and, there-
by, preserve the debtor income tax attributes, such as
its net operating losses (NOLs). In that case, the buyer
will prefer to purchase the debtor corporation stock.
However, if the buyer cannot use the debtor
income tax attributes, then the buyer may prefer to
purchase the debtor corporation assets. That way,
the buyer can obtain a step-up in the depreciable
tax basis of the acquired debtor assets. This tax
basis step-up can result in future depreciation or
amortization income tax deductions for the buyer.
On the other hand, the debtor corporation will
generally want to minimize the taxable income rec-
ognized on the sale of either its stock or its assets.
The seller’s ability to minimize the reported income
on the sale will depend on:
1. the debtor’s tax basis in the corporation
stock or the corporation assets,
2. the availability of offsetting losses, and
3. the realization of any cancellation of debt
(COD) income related to the bankruptcy or
reorganization.
The debtor corporation may be able to indefi-
nitely defer the recognition of the gain on the
transaction by structuring the Section 363 sale as
a tax-free reorganization under Internal Revenue
Code Section 368.

[DoI noU]

Just joining the board but been lurking for weeks. Recently rediscovered Ihub You and Linda do awesome cordial discovery. Wasn't The POR to be requested/ hopefully granted today and scheduled for June? Hence, another 8-k tomorrow or Tuesday?