Goldman Sachs Group Inc. plans to lend $4 million to bankrupt Real Industry Inc. and to eventually spend about $10 million to buy common stock in the publicly traded company, which is sitting on almost $1 billion in potential tax benefits, WSJ Pro Bankruptcy reported. Real Industry filed for chapter 11 in November with $913.5 million in net operating losses — potentially valuable because they can be used to offset future earnings — and said that it needs the Goldman Sachs loan to stay afloat in bankruptcy, including to preserve the value of those tax deductions. The Beachwood, Ohio-based holding company, which acquires undervalued businesses and takes advantage of net operating losses, said it has no access to the $365 million in financing that its operating unit, aluminum recycler Real Alloy, had in hand from Bank of America and others when it, too, filed for bankruptcy in November.
