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I have a question here that some of you who understand the NOLS tax situation might be able to help me figure out. I'm showing the difference in how Hochberg has allocated the NOLS and how the IRS Settlement Agreement handled the amounts on a per-year basis. Can anyone see where Hochberg got his numbers?
In the Examiner's report, he states that there were TWO seperate NOLS tax returns, one for a 2-year carryback and the other (the 5 year carryback) so the NOLS refund amount in the IRS Settlement Agreement should be broken out between those.
According to the Examiner's report, (PDF pg 127) the breakdown of the $4.77B received a couple of weeks ago included the Net Refund due to Normal 2008 Loss Carryback (2 yrs??) for $1,812,929,845. Then the next item it states is "Incremental" Net Refund Due to Extended NOL Carryback (5 yrs) in the amount of $2,773,734,144.
http://www.ghostofwamu.com/documents/08-12229/08-12229-5735-1.pdf
However, in the IRS Settlement Agreement (PDF pg 40), the IRS lists the amounts being refunded per year. For 2007/2008 (2 yrs??), it totals less than $200MM from the total $4.6B. The other years (2003 - 2006) total $4.3B+.
SO ... how did Hochberg come up with his numbers? The reference on that page shows a WGM file. That is a significant difference of $1.587B. That 5 year NOLS refund is the one that WMI gets 70% ... or that would put another $1.11B in the WMI assets.
http://www.kccllc.net/documents/0812229/0812229100813000000000004.pdf
My main point is Susman/Solomon need to file THEIR assets & valuation because neither Rosen nor Hochberg's numbers jive!! They need to get the actual tax returns for those TWO filings so they can see what was filed and what was approved from the audit.
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BTW ~~ while reading through the Examiner report, the value he stated to be paid to the Sr. Notes is overstated by $400MM. It should be $4.4B instead of $4.8B (that comes from the latest interest report filed by the Debtors a couple of weeks back).
Also ~~ The $800MM "other claims" in Hochberg's list of creditors & claims to pay before equity must include the $335MM to the WMB bondholders. That should not even be an issue ... they should NOT get paid with WMI money.
The reason I point these out is with these adjustments (& tweaking Hochberg's numbers) it should add another $1.8B to Equity (Preferreds). That's with paying off the PIERS, too.
If the TPS is successful to get their $3.9B, Susman just needs to find another $1.6B+ (hidden assets, subs, etc., the cap contributions) to reach the commons!!