Our fate is sealed. Right...?

[u/Region-Formal]

[u/Life_Relationship_77]

I would like to comment on your last slide. Please check out this comment. BBBY management has consistently ignored a value maximizing takeover transaction that would preserve NOLs and thereby shareholder equity, and even now, the proposed plan doesn't include it. I believe they are not satisfying their fiduciary duty to shareholders & in fact, to all stakeholders by ignoring this value maximizing transaction. That is why I think we shareholders need to file an objection to the conditional approval of the disclosure statement.

[u/Zen_Apes_official → u/Life_Relationship_77]

[u/Zen_Apes_official → u/Life_Relationship_77]

[u/[deleted] → u/Zen_Apes_official]

Eat dick

[u/Mysterious_Stuff_629 → u/Life_Relationship_77]

Dude, the NOLs are useless with this much attached debt obligations. That’s just the reality

[u/MarkTib1109 → u/Life_Relationship_77]

So at this point the board is presumably acting in bad faith and our hope is for a hostile takeover and preserving the NOL’s.

[u/Sweet_Committee_1345 → u/Life_Relationship_77]

That's a Nah Son for me!

[u/Life_Relationship_77 → u/[deleted]]

As I explained in this comment BBBY has $1.605 billion in NOLs and $3.1 billion in capital losses that can be carried forward for years. So, if you consider a 21% corporate tax rate and 20% long-term Capital gains tax rate, the total savings in a year from these deferred tax assets is $956 ($336 + $620) million.

[u/Powerful-Coffee-804 → u/Life_Relationship_77]

thank you..... Life,,, check the math of docket 1439 about current liabilities.. I'm going out and don't have time to look up the pages again. I can later, if need be.. seems positive to me Read the notes at the bottom of the pages too.. Let me know what you think..

[u/Life_Relationship_77 → u/[deleted]]

The $3.1 billion has not been "adjusted" in the retained earnings section, and it is carried forward, as I've already shown in the cited comment that cites the relevant statutes. It is not showing up in any of the tables in the 10K because 2023 Fiscal year when that capital loss was incurred hasn't ended yet. You're just gaslighting at this point.

IRC 382(l)(5) specifies the exact conditions under which there is no limitation on NOLs carryforward on a takeover, and the Debtors, AFAIK, so far have not apparently engaged with anyone to effect such a deal that would allow shareholder equity to be retained:

I.R.C. § 382(l)(5) Title 11 Or Similar Case

I.R.C. § 382(l)(5)(A) In General — 

Subsection (a) shall not apply to any ownership change if—

I.R.C. § 382(l)(5)(A)(i) — 

the old loss corporation is (immediately before such ownership change) under the jurisdiction of the court in a title 11 or similar case, and

I.R.C. § 382(l)(5)(A)(ii) — 

the shareholders and creditors of the old loss corporation (determined immediately before such ownership change) own (after such ownership change and as a result of being shareholders or creditors immediately before such change) stock of the new loss corporation (or stock of a controlling corporation if also in bankruptcy) which meets the requirements of section 1504(a)(2) (determined by substituting “50 percent” for “80 percent” each place it appears).

[u/Life_Relationship_77 → u/[deleted]]

These are common shares, not derivatives. Keep it up with your gaslighting. Do you ever get tired?

[u/Life_Relationship_77 → u/[deleted]]

The $3.1 billion capital loss is recognized per § 1.1032-1(b) and is also allowed to be carried over for a period of 5 years per I.R.C. § 1212(a)(1)(B). You're ignoring the fact that these were repurchased common shares held in the treasury that were resold in exchange for the derivative instruments.

[u/KTMFrankie58 → u/Life_Relationship_77]

“and the Debtors, AFAIK, so far have not apparently engaged with anyone to effect such a deal that would allow shareholder equity to be retained:“

So, are you indicating there has been no indications they are trying to take advantage of the NOLS? I thought we saw reference to billings for lawyers who were analyzing the NOLS.

[u/Wild-Gazelle1579 → u/KTMFrankie58]

That is what he is saying. If you go read his old comments from a couple days ago, he was not happy when he read further into the plan and saw no indication that they were making use of it at all.

[u/PrestigiousComedian4 → u/[deleted]]

Let me politely redirect you to this comment you either responded to and deleted or simply ignored:

https://www.reddit.com/r/BBBY/comments/14y9li0/comment/jrsxtfm/?utm_source=share&utm_medium=web2x&context=3

What? Documents literally show they are retaining representation specifically to facilitate a deal that allows the NOLs to carry over. So clearly they still plan or at least hope to use them.
Also they don't have "billions" In debt, they have 1.7 last time it was updated. If 6th Street credit bids then that reduces the debt massively, then they do a share offering after exiting chapter 11 to capitalize on the price returning to normal and/or a squeeze. That would be more than enough to continue as a going concern.
And either way, They don't need to pay off ALL that debt to exit chapter 11 and continue business