Restructuring after a bankruptcy? Consider the tax implications
04 November, 2021Tax Considerations for Chapter 11 Bankruptcy Proceedings
A smart restructuring weighs tax impact, consider the implications
When restructuring after a Chapter 11 bankruptcy, corporate executives typically focus on the nuts and bolts of strengthening or revising the company structure and finding ways to cut costs to boost profitability.
Properly executed, a restructuring has many potential benefits beyond resuscitation:
- Reduce costs and increase efficiencies
- Decrease or consolidate debt
- Concentrate on key products and accounts
- Reposition the company for competitive advantage
- Reduce risks
- Address shareholder disputes
- Spin off a subsidiary company
- Create new investment opportunities
- Improve employee engagement via share participation
A smart restructuring weighs tax impact
Restructuring in the aftermath of Chapter 11 is a time-consuming and difficult process that has an impact on employees, vendors, stockholders, and consumers. However, in focusing only on the financial and organizational aspects of the new structure, the executive team may overlook the significant tax implications of a change – which can be a costly mistake.
Thoughtful planning, however, can help corporate leaders convert tax liabilities into enhanced assets and reorganization returns.
Experts help you navigate the tax implications of your restructuring.
ShareVault’s Virtual Data Room (VDR) is the platform of choice for a restructuring, providing an ultra-secure environment for the team to collaborate as they develop the new company plan. To further aid our clients, ShareVault has invited prominent tax experts to share their knowledge in “Tax Considerations for Chapter 11 Bankruptcy Proceedings,” a webinar on Tuesday, November 9.
ShareVault guest panelists Christopher Howe and Brian Pedersen of Alvarez & Marsal Tax and William A. Curran of Davis Polk delve into the tax considerations common to post-bankruptcy corporate restructurings and spinouts, addressing such important issues as:
- How Chapter 11 bankruptcy affects tax attribute (e.g., NOL, NUBIL) availability post-emergence
- What priority do tax claims have in bankruptcy proceedings
- How the bankruptcy proceedings can be used to negotiate tax claims, including state and local jurisdictions
- The latest market trends in restructurings
This one-hour webinar will be moderated by Melissa Buich, a director of Alvarez & Marsal’s Global Transaction Tax practice.
Join us on Tuesday, November 9th at 9 AM PT for
Tax Considerations for Chapter 11 Bankruptcy Proceedings
Not available to join the live event? Register and we'll send you the recording.