The NOL's, yeah, a subject heard all to often. Maybe that is the reason the debtors (with the EC's urging) put DIME pari passu with WAMUQ and basically treated DIME as a class B common, thus not really affecting pre or post confirmation ownership.
But, if the NOL's go poof because of DIME getting paid, so what, it is not an impediment to plan confirmation.
maybe im misreading your post but are you suggesting that if dime is ruled as class 21 that this "influx" of new shares would precipitate the loss of the $5.4 bil nol???? as i see it a TOTAL of 200 mil of newco shares will be issued irregardless of the dime ruling. as i see it all that changes is that percentage owned by existing commons will be reduced from 30% to anywhere between 10-15%....thus preserving the $5.4 bil tax benefit for the newco.
B. The Disclosure Relating to the Impact on the NOLs Based on the LTW Treatment Is Inadequate 16. On page 213 of the Disclosure Statement, the Debtors state that if the LTW Holders have a large equity interest in Reorganized WMI, at the time they get their distribution from the Disputed Equity Escrow, that could cause a subsequent ownership change, which in turn could substantially affect the unlimited usage of the NOLs. The Disclosure Statement needs to have a better description of this potential risk since the unlimited use of the NOLs is a significant component of the value of Reorganized WMI. Equity holders are voting on the Plan, and are required to give third-party releases in order to get a distribution under the Plan. As such, it is imperative to give proper disclosure of what they may or may not receive in exchange for their vote and giving such releases.
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