Seeking Alpha

Tronox expects to receive millions in tax deductions via court ruling, +8.6%

  • Tronox (TROX) +8.6% premarket following last night's court ruling that Anadarko Petroleum and its Kerr-McGee unit acted with intent to delay and hinder TROX's creditors at the time of the spinoff.
  • The court found APC liable and indicated a damage award of as much as $14.5B - the value is still to be determined - but TROX will receive no immediate or direct benefit from the ruling; instead, 88% of the judgment will go to trusts and other governmental entities to remediate polluted sites.
  • TROX expects to receive tax deductions equal to the amount spent by the trusts, which will accrue over the life of the trusts as the funds received by the judgment are spent; the expenditures and accompanying tax deductions may continue for decades, potentially amounting to hundreds of millions of dollars annually.
Comments (2)
  • phildevoyd
    , contributor
    Comments (148) | Send Message
     
    Bill Gates, or whomever he has as an adviser, was right. He owns about 9% of the stock.
    13 Dec 2013, 09:05 AM Reply Like
  • phildevoyd
    , contributor
    Comments (148) | Send Message
     
    Keep an eye on $WES. Anadarko owns a very large stake; so much that $WES might trade erratically today.
    13 Dec 2013, 09:11 AM Reply Like
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