% | $
Quotes you view appear here for quick access.

A123 SYSTEMS, AŞ Message Board

  • studioa33 studioa33 Feb 1, 2013 9:39 PM Flag

    Net Operating Losses - Wanxiang Heads Up!!!!

    By only purchasing assets, Wanxiang is losing the use of A123's best asset, Net Operating Losses. Best thing to do is outright purchase of A123's non-government business or re-look at previous offer of investment into A123's non-government business for large stake. That way, Wanxiang preserves Net Operating Losses. To lose this asset is malpractice by Wanxiang's advisers. Its a win win for Wanxiang and existing shareholders. Now CFIUS has agreed to allow Wanxiang to buy the non government business, Wanxiang is free to offer the previous offer, get this company out of bankruptcy, get this company's name back and get it operational without the bankruptcy overlay. Atleast look into it!

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • You need to read up on transfer of NOLs. They are limited. Even tho A123 lost 256M last year, Wx could only claim a fraction of that. Also, they can only be claimed against future profits within 5 years, which A123 will not have. Wx knows what they are doing. You.. not so much.

      • 1 Reply to lifepo4ever
      • 256 million last year alone. They lost money in prior years as well that can be utilized by Wanxiang. If Wanxiang did an acquisition of A123, as opposed to asset purchase, they could utilize the NOLs against Wanxaing's future profits. Look at Sirius Satellite Radio articles on NOLs to see what an excellent asset that they are for an acquirer. Voluntary bankruptcies under Chapter 11 can be restructured even after asset sale. Additionally, getting the bankruptcy process over as soon as possible is the best thing for the company, morale of employees and customers, and reduces the strong likelihood of a share holder lawsuit.