Replies to post #5265 on Mesa Air Group, Inc. (fka MESAQ)

[mattydog]

Sometimes, That is some really interesting stuff and more good news as to why common stays intact. I have a really interesting article about NOL's I just put on my desktop to read in full. I tried to get it on this post but it is a pdf file and I have no clue how to attach a pdf, a url link yes pdf no. I am not sure if it backs up your point but it was, like I said interesting. Thanks very much, Matt

PS I am back in the market tomorrow for more shares.

There has been a lot of stuff abour NOL's in BK and who gets to keep them. So that is why I appreciated the post. I have read more conflicting views of NOL's in BK. It is refreshing for someone to write about it that makes sense or is sure of what they are talking about!

[Candle]

Right on buddy:-)

[sometimes_right]

NOL carryback rules modified by Congress (for those unfamiliar OR misinformed about the new legislation - it's NOT just limited to banks)

The Worker, Homeownership, and Business Assistance Act of 2009, signed into law by President Obama on November 6th, extended the expanded five-year net operating loss carryback that was scheduled to expire at the end of 2009. The provision has been extended and modified for 2010.

The American Recovery and Reinvestment Act of 2009 allowed eligible small businesses to elect to carry back net operating losses (NOLs) from 2008 for three, four or five years. The new law provides a similar election to ALL U.S. businesses of EVERY SIZE to carry back NOLs up to five years. The new, expanded election is available for NOLs incurred in either 2008 or 2009, but not for both years. However, an eligible small business that elected under the 2009 Recovery Act to carryback 2008 NOLs may make the election for an additional year, enabling the qualified small business to carry back NOLs from both 2008 and 2009 for up to five years.

Under the new law, an NOL carried back to the fifth year before the loss year is limited to 50% of the available taxable income for that year. Any remaining NOL can fully offset taxable income in the remaining four carryback years.

The 50% limitation does not apply to an eligible small business that elected to carry back its 2008 NOL under the 2009 Recovery Act. However, it does apply to its 2009 NOLs. The election to take advantage of the new law's NOL provision must be made by the due date (including extensions) for the tax return filed for the taxpayer's last taxable year beginning in 2009.

The election is available for a tax year ending after December 31st, 2007, and beginning before January 1st, 2010. Thus, a fiscal year taxpayer can make the election for tax years beginning or ending in either 2008 or 2009. The IRS will likely follow the NOL election procedures it crafted under the American Recovery and Reinvestment Act of 2009.

Norman Posner, CPA, managing partner, Samet & Co., Chestnut Hill, Mass.
http://nerej.com/37551

[dale45]

where does it say stocks can't be canceled if you collect nols can someone confirm that with a link.

[sometimes_right]

further elaboration: "historic shareholders and 'qualified creditors' own at least 50% of the value..." My point was concerning the common shareholders requirement, sorry for inadvertently omitting details concerning creditors (they always try to forget us though).

However, this still is VERY positive, as it allows NEW "vulture" investors (me/you/whomever) to purchase the other -50% that historic shareholders dump during BK and "stand on the shoulders of the giants" that preceded us as the EQUITY remains intact (although perhaps diluted to some degree if bondholders agree to any debt for equity swap arrangement)and PPS rises toward fair market value as Chapter 11 progresses towards completion. Of course the historic shareholders also stand to benefit in such an instance as they may eventually gain full recovery or more by holding on to their shares throughout the Chapter 11 process, provided that this crucial factor exists - assets are GREATER THAN liabilities.

It's somewhat a misnomer saying "commons will stay intact" as it is the EQUITY that might stay intact depending upon the unique circumstances of any given Chapter 11 restructuring case... and IS so, then usually new shares are issued to common shareholders reflecting the value of their ownership of the newly restructured corporate entity...

ALL in my opinion, of course.

reference to OTC BB King's statement of the actual regulation on different mb:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45819076