Replies to post #30790 on Sears Holdings Corp. (fka SHLDQ)

[56Chevy]

I was responding to a statement re: NOL's in general that I understood to be a very oversimplified notion about who and how NOL's get used. Everyone focuses on the 50% change of ownership rule which is huge because it gives the user the most advatageous use of those losses towards any future gains. There are also laws regulating how much of the NOL's are usable when the 50% rule isn't followed. They dont vanish but they do diminish.

As I said at first glance it would appear the NOL's would not be available for Tranfsform Holdco LLC...but I knew there may be ways portions of the NOL's, or maybe even the whole thing, could follow Transform Holdco LLC. I just wasnt prepared to quote book, chapter and verse on the law allowing them to use those NOL's.

This case is a very unique situation. It isnt often when the largest shareholder is also the largest secured creditor. That complicates things xfold.

Good work by the way!