People are writing about tax write-offs, that the company will be able to use the previous years' losses as a tax advantage. But wouldn't the company need to make a profit, against which they can use the losses ?
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So all this effery to get tax deductions for his hedge fund owned by him and his rich friends/clients?
If that doesn't urinate you off I don't know what would.
Correct. Or another ESL wholly owned company (or ESL itself) could make 11 bil in profits and ESL write it off against the Sears debt.
i see, so if the umbrella company makes money selling real estate or selling off name brands, they can offset taxes on those profits, using previous store operating losses ?
Strictly speaking, no. The owners of the company need to make a profit. It’s legal mess, but technically speaking SHC did not incure those losses. Sears Roebuck, Kmart corp, Innovel, etc. did. The parent company (SHC or ESL) is free to use those writeoffs against the profit of other businesses they own.