DuhmanDoo

GM Common Stock Is Worth More than You Think

Read IRC Sec 382. The Net Operating Losses are generally transfered to the new entity, under a 'skim down' provision limiting their usage to a fraction of the book asset value, and extended over a 20 year period.

However the pre-bk 'asset sale' may leave behind those tax losses. But any entity that buys the shell will only be able to receive a tax deduction equal to 4% of the purchase price per year for 20 years. Essentially, slightly better than a 20 year treasury. Its designed to nullify an value in an NOL.

*Nice article*, maybe you should do some research next time. BTW, the 'bad bank' GM will have a tally of leases, and product liability suits well ahead of the miniaturized NOL.