$5.9B NOL "Not Recorded" - Footnote Ref. Only
Note 5: Taxes
The tax asset and liability balances are recorded consistent with WMI's historical accounting practices as of the Petition Date and adjusted for refunds collected. Generally, tax related claims and payables are recorded on WMI's books and records on a consolidated basis with the other members of the consolidated tax group and have not been adjusted for any potential claims against these assets. The current recorded balances do not reflect all expected refunds or payments as these amounts are currently being reviewed. The current estimate for the total expected refunds, net o[potential payments, is in the range of approximately $2.6 - $3.0 billion. JPMorgan, the purchaser of substantially all of WMB's assets, has asserted significant claims to the expected tax refunds.
On November 6,2009, the Worker, Homeownership, and Business Assistance Act of2009 (the "Act") became enacted into law. "The Act provides, in pertinent part, that corporate taxpayers, subject to certain limitations, may elect to extend the permitted Net Operating Loss carryback period from two years to five years (with such taxpayers only receiving half this benefit in the fifth year). WMI estimates such an election could result in additional refunds of up to approximately $2.6 billion, as to which there are competing claims of ownership. No provision or benefit from income taxes has been recorded as the NOL's are expected to be sufficient to offset income during the reported period. Income tax expense contains minimum taxes paid in certain states.
As we discussed yesterday and in earlier days in several threads, it was noted that they hadn't even completed a review of the NOL carryback to 2003 at 1/27/10, never mind 2004, 2005, 2006 and 2007. Others suspected they didn't want to get it done because they don't want the cash to come in. You were right. I am not an attorney, nor do I practice BK or SEC related areas, but the above underlined comments are the same as previously noted and are potentially "false and misleading." I continue to be stunned; but then again this is WaMu and there is no apparent regard for "anything WaMu." The authorized signatory, Maciel, is allowing a play of words to CYA. It doesn't. IMO. The EC SHOULD BLAST HIM BIG TIME and consider a petition to the BK court for removal of him/his firm for this. The Judge should be apprised of this and bang her gavel (on someones head preferably) and tell these suits that "SHE IS THE BK JUDGE AND I'LL BE MAKING THESE DECISIONS!"
IMO, it is not for the administrator of the BK estate to "take sides." Maciel has. IMO. He has chosen to exclude up to $5.9B in federal income taxes receivable from the Monthly Operating Report MOR because of the above underlined comments. Absolute BS. IMO. I think that it should have been and should be booked/recorded - and "then" he can make the same qualifying narrative in the NOTES that "there are expected to be significant claims." It is an asset to the BK estate and Maciel is clearly "not" the BK Judge and should not be allowed by the EC to get away with this. The EC should also add to the consideration of a petition to remove Maciel and his firm for failing to timely assure the filing of the NOL refund claims up up to $5.9B. Inexcusable. CASH is a bigger problem to hide. What do they do, take the check to courtroom and ask the Judge then "who gets it?" She has to say "first, since you are here asking me, its in my jurisdiction and you will deposit the damn check in the BK estate." In fact, she ought to then take the check, restrictively endorse it, take a recess, and go to the bank and deposit it herself!
The flip-side? They are nearing a settlement and they do intend to "allow" WMI to keep all the NOL refunds as part of the settlement scenario posted in another thread. Under this flip-side argument, they can't "give it now" and record it if we are going to "give it to you in the settlement agreement." But again, Maciel in his capacity shouldn't be doing this. IMO.
www.ghostofwamu.com/documents/08-12229/08-12229-2425.pdf
!!! the real body1 !!!
An der Börse sind 2 mal 2 niemals 4, sondern 5 minus 1.
Man muß nur die Nerven haben, das minus 1 auszuhalten.
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