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The Benton estate retained bare legal title to the interests
in CBI and CBM with no rights of ownership. The plan included
the following terms, which in effect made the Benton estate a
mere nominee:
i) the Liquidating Trustee shall be deemed to hold an
irrevocable proxy and power of attorney to act on the
Benton Estate’s behalf with respect to the Baseball
Interests or any of them;
ii) * * * [the Baseball Interests] shall be deemed
ordered * * * to pay over all payments on account of
the Baseball Interests as the Liquidating Trustee shall
direct;
iii) the Benton Estate shall not sell, encumber, or
otherwise dispose of any interest in the Baseball
Interests without the express prior written consent of
the Liquidating Trustee. To the extent required to
effectuate the purposes of this section, the
Liquidating Trustee shall be deemed the representative
of the Estates in regard to the administration of the
Baseball Interests.
On September 1, 1997, the first day following the effective
date of the plan, petitioner was discharged under the provisions
of Bankruptcy Code section 1141(d) from any debt that arose
before confirmation, and he was relieved of his status as
“debtor-in-possession”.
On his 1997 Federal income tax return, petitioner claimed
approximately $84 million in NOLs that had arisen before the
commencement of the bankruptcy and had not been used by his
bankruptcy estate. Petitioner contended that he received the
NOLs from his bankruptcy estate as of August 31, 1997, the
effective date of the confirmed plan. During April 1999
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