Western Wind Energy Corp V.WND

anyone have details on the tax credit?

[agrossfarm]

An American contact told me that the tax credits these days are worth 15% of the gross amount in the marketplace (or $45 million for $300 million). That would be ~70 cents per share of WND.

But I am also under the impression that the tax credits/grants were received and that WND no longer has these. I don't know that to be correct though and I wondered whether any of you can point to something official about this.

I am also interested to find out whether, if they still exist, these are NOLs (net operating losses) carried forward or whether they were or are related to renewable energy subsidy programs.

Seeing as how 70 cents per share is significant, I want to be sure one way or another.

Note that the obsolete (because projects are completed and worth more) Official Valuation seems to have nothing about any $300 million tax credit. It does have entries for cash grants (that are presumably directed to renewable energy projects:

https://www.westernwindenergy.com/s/News_Releases.asp?ReportID=470520&_Type=News-Releases&_Title=The-Final-Phase-Three-of-Fair-Market-Valuation-Completed

[Probability]

In an email I asked if the possible expiration of PTC credits would effect the sale . The response stated all have been received or granted .  Granted would lead me to believe some are still coming ?  

[agrossfarm]

My US contact called WND and was told essentially the same thing, Probability. And this meant that all the benefits had been received (except for Puerto Rico, I think). And given WND horrible mess of debt, Management wisely uses assets to retire as much debt as possible because the interest rates are very high.  My calculations indicate a net debt (debt minus cash), not including the new debt

[Probability]

They will not hesitate to respond [e-mail]

[peter75]

tax credits are not used on an annual statement unless the copany is showing a profit Only x amount of tax credits can be used on a particular year and as a percentage of over all You cannot use 10 million in fed tax credits to offst 10 million in operating profit The tax credit has to be in line with the length of time the assett is written down over Tax credits are capital cost carry

[peter75]

you cannot use a calculation and throw it at the listeners without  using an assett over liability formula 3.65 in debt per share vs xxx   What is the enterprise value, price to tangiable book, enterprise value ??? You can not state things like that on any board and  state your friend in the usa Does he work in a shoe store?

[agrossfarm]

LOL. Who says I have give you information that I spent my time figuring out according to your rules, Peter? For those like Fireman who knows he is not familiar with the subject, the current Enterprise Value is the net debt per share plus the share price.  But what some of us are interested in, possibly not Peter, is not the current Enterprise Value. It is the Value that an acquiror will be

[dirac]

I think that in the case of wind energy tax credits can be used in 1 year , this was mentioned in an article months  ago ( cannot find it back). tax credits could be used  by a big  company thas  buys WIND. Ithink that the tax credit amounted to 300 miillion.

[peter75]

I could not agree with you more on a spin off deal As to the accounting Agro please read what I post because I said what you are saying now Enterprise value changes greatly as the asset moves fwd and start to be cash flow positive thx