Replies to post #1245 on Scottish Re Group Ltd (fka SKRRF)

[gold80302]

bwana12 what are we missing?

[Enterprising Investor]

NOLCFs will provide only a limited benefit.

The ME investment on 5/07/07 qualified as a change in ownership under IRS Section 382. At 9/30/09, total unrecognized tax benefit was $131.8 million, resulting in a $18.2 million benefit at the effective tax rate (page 24).

SKRRF wrote off $142.6 million in 2007.

[wzebra33]

"it seems that all of you are missing one additional thing "

You are dropping a cliffhanger on us ? (LOL) Stay tuned for the next post!

[h_man_investor]

SCT has no economic exposure to ORe so I'm not sure why a purchase by CC and Cerberus (or even SCT for that fact) will amount in "setting up the company for some level of new business."

Also, a renegotiation of the conversion price by MM and Cerberus only dilutes current sh/h and does not recap the company. And even so, MM and Cerberus have no economic incentive to convert before the mandatory conversion date (the conversion value is $100mm below liquidation rights value and no one in their right mind would voluntarily move down in the capital structure before they needed to)..

Please correct me if I'm wrong.

Also, it's my understanding that if the company is sold outright (not just the NA ops) the NOLs will carry over to the purchaser.

There's not too much more debt out there to purchase- just the Capital and Preferred Trusts which are owned by SCT's subs. Purchases of these as well as the Stingray pass-thru's makes sense because they are senior in the capital structure. However, taking precious cash and buying back common shares makes no sense. I still have yet to determine if the MM and Cerberus purchase agreement allows for the purchase or tender of junior securities (obviously it allows for senior purchase as demonstrated by Stingray- but maybe CC and Cerberus needed to approve).

I think I know what you are getting at regarding what I'm "missing." Send me a private message with your email and I'll let you know what I think it is.

[hfields]

From what I have had time to read, I take from your posts that you are positive on this stock that it does have potential in 2010. Ie...you are bullish on the stock w/ caveats...