Replies to post #13550 on Corus Bankshares Inc. (fka CORSQ)

[rsr2004us]

Nice answer Billam ... ;-)

I wonder if there's any legal precedent deciding this issue one way or the other ... ???

[td31]

What happens if FDIC wins on the contention that TOPrs is equity

[hestheman]

Billiam....rule 382 cites to preserve NOLs 51 percent of the reorganized company must be held by old equity OR old debt. Considering trust preferreds are a hybrid of both equity and debt....it is due more to the fact that they are old debt than equity as to why they can be used to achieve max NOLs. That is the way the FDIC in interpreting it...and they have a very good chance of winning that arguement. Unfortunate...but true.