Replies to post #4341 on Corus Bankshares Inc. (fka CORSQ)

[pathan786]

JMHO,, This CH11 had to take place to clean up a lot of information that would help perserve the NOL's.. This is a GOOD Thing that is happening, and a Merger would benifit all involved Greatly.

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itsmikie, I agree with you that NOLs are preserved ONLY if ownership change/merger happens during a Ch11 BK. They are lost if ownership change/merger happened outside BK. So, this BK had to happen.

I am fine as long as Creditors are NOT driving the BK and it's actually Mr. Big/savvy investors instead. Like I mentioned in last post I can't think of how 100's of creditors - each individually holding small $$ debt, can drive the bankruptcy or manage CORS after the re-org.

Finally, I argue that we get paid off not just by the virtue of a Merger. We get paid off when we are "alive" after the Merger. To that end, I could care less how that savvy group satisfies the Creditors, but they have to keep us in the re-orged CORS.

Everyone on-board with that ?

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Now, Creditors know that in case of Ch7 (Liquidation), they get CORS Cash $35M + 2009 tax refund of $149M. The 2008 tax refund of $109M is already pledged to FDIC as it was due to Corus bank which is under FDIC Receivership.

So, logically Creditors may not agree for anything less $185M.
That means a debt "cancellation" of $400 - $185M = $215M.

and the NOLs get reduced by $215M i.e. from $648M (that Randy Curtis is saying in his declaration) to $433M. This is the savvy Investor's inspiration for the merger.

[dmceng]

itsmikie

For sure this is just another spoke in the wheel to finalize the deal. Many thanks for your input.

Take Care
David