Replies to post #100632 on Lehman Brothers Financial SA (LEHNQ)

[SwissCheeseAccount]

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I believe LBHI will take a discharge and use the NOL.

me too but not in the sense you are describing!

Section 1141(d)(3) expressly proscribes the granting of a discharge if “(A) the plan provides for the liquidation of all or substantially all of the property of the estate; (B) the debtor does not engage in business after consummation of the plan; and (C) the debtor would be denied a discharge . . . if the case were a case under chapter 7.

pro·scribe
/pro'skrib/
Learn to pronounce
verb
3rd person present: proscribes
forbid, especially by law.
"strikes remained proscribed in the armed forces

For example, Congress could clarify that, so long as historic shareholders and creditors receive at least 50 percent of the reorganized debtor’s equity security interests, the debtor may retain only a share of its available tax attributes, calculated by applying the ratio of (i) the allowable claims, as determined under bankruptcy law, of the historic shareholders and creditors that are deemed to be fully satisfied, because such persons will have received equity security interests in the reorganized debtor, to (ii) the total of all allowable claims against the debtor. [color=red]The amount of available tax attributes would take into account any reductions mandated by the tax laws, such as the reduction for cancellation of indebtedness income excluded by the debtor from taxable income. [/color]For example, if a company with $1,000 of NOLs reorganizes pursuant to a Chapter 11 plan that vests 100 percent of the reorganized debtor’s equity security interests in historic creditors who together hold only 75 percent of the total allowable claim

In January 2020, the Company received a supplemental IRS ruling extending the original ruling relating to the Company’s liquidation. All remaining Debtor NOLs not previously utilized to absorb taxable income of the LBHI Tax Group are expected to be fully utilized to offset income resulting from the discharge of debt on the final date of liquidation of LBHI.

https://www.mondaq.com/uk/financial-services/999330/debt-for-equity-swaps-a-possible-solution-to-rising-levels-of-debt

A debt for equity swap involves a creditor converting debt owed to it by a company into shares in that company. The effect of the swap is the issue of the equity to the creditor in satisfaction of the debt, such that the debt is discharged, released or extinguished.

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Disclaimer: Just because I talk about the topic does not mean I believe

Highway I don't care what you believe for as far as I'm concerned you don't even own any shares here and the ones you do have are mine anyways. You are in the same boat as joe stocks, no shares but love debating here all day