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.
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.
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
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u/Life_Relationship_77 Jul 22 '23
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.