According to the 03/09 10-k, Net Operating Loss (NOL) from 2006-2008 was about 1 billion dollars (1B).
The company filed a motion which Judger Gerber approved early on blocking the sale of more than 5% of Chemtura stock by holders without approval from the judge or bondholders.
The reason for this is that in order to carry forward the NOL 50% of existing shareholders must stay intact upon emergence from bankruptcy and own shares in the post BK company. This is law, not Chemtura rule.
Now if they cancel common, can't carry forward the 1B in NOLs to offset future profits and pay no taxes.
That is a huge motivator to keep common intact, and it's revealing that Chemtura actually got court approval to prevent holders of more than 5% to sell to keep intact the NOL's. Doesn't guarantee that common won't be canceled, but gives support to keep it intact.
The other thing to remember, no taxes on asset sale while in BK.
The above two points make this stock a pretty good risk/reward. Combine that with the bullish pennant flag, and impending golden cross on technicals, it seems to indicate something is coming down the pike.
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