Replies to post #12037 on Corus Bankshares Inc. (fka CORSQ)

[irishintelligence]

I agree we need to step it up. I sent these emails recently:



-----Original Message-----
From:
Date: 05/26/2011 04:37 PM
To: [e-mail]
Subject: Fwd: Term Sheet // $94.2 Million Opporunuity



Dear Mr. Catalanello:

Had an opportunity to review the term sheet. Please review my calculations below. Unless I am mistaken, which is entirely possible, canceling common shares will cost the reorganized company over $90 Million.

Please see below. I hope to hear from you.

Sincerely,




If every dollar of debt is extinguished and the tax attributes are reduced dollar for dollar of discharged debt income (rule 382), total value of the NOLs post-debt discharge:

(in millions)
1) $650 NOLs [Current State] -$425.5 TOPRS [Debt Discharged] = $224.5 NOLs
2) Illinois Corporate Tax: 7% + Federal Corporate Tax: 35% [$224.5 NOLs * 42%] NOL CASH VALUE: $94.2

Old common shares would also benefit from the following: $265 FDIC + $23 Cash + $6 Mint Loan = $294 Million.

If old common equity is diluted by new shares in New Corus at 49.9% (avoiding ownership change) [$294 Cash * 49.9%] = $146 Million.


Resolution: If common shares are allowed to vote on a plan of reorganization we agree to take on $146 Million in debt. Our shares are saved and New Corus retains $94.2 Million in NOL Cash ($224.5 NOLs).





-----Original Message-----
From:
Date: 05/24/2011 02:32 PM
To: [e-mail]
Subject: Term Sheet




Gerard S. Catalanello
Duane Morris LLP
1540 Broadway
New York, NY 10036-4086
[e-mail]


Re: In re Corus Bankshares, Inc., Case No. 10-26881 (Bankr. N.D. Ill. filed June 15, 2010)


Dear Mr. Catalanello:

When reviewing docket number 460 (http://docs.bmcgroup.com/corus/docs/ilnb_1-10-bk-26881_460.pdf), Todd C. Meyers, Kilpatrick Townsend & Stockton LLP, Counsel for the Official Committee of Unsecured Creditors of Corus Bankshares requested that you address certain threshold issues related to your ability to successfully confirm a plan of reorganization based upon the Term Sheet. Threshold issue #5 specifically asks you to "...identify any chapter 11 case of which you are aware in which a bank holding company debtor has confirmed a plan of reorganization on terms similar to those contained in the Term Sheet, including, in particular, a conversion of debt to equity and a preservation of tax attributes (such as NOL carryforwards)."

As an equity holder I am intrigued by this language. Does your Term Sheet propose a reorganization that includes existing equity? If you cannot answer this question directly, would you please allow me the opportunity to review the Term Sheet?

For your situational awareness, 138 Corus Bankshares, Inc. shareholders representing over seven (7) million common shares have been closely following this case and working though the details as they become available. Those common shareholders can be contacted here: http://investorshub.advfn.com/boards/board.aspx?board_id=13049


Sincerely,