Tax Issues in Consensual Debt Restructuring

Journal
Scarborough, R.; Caracristi, D.
United States
Finance and Capital Markets (formerly Derivatives & Financial Instruments) 2012 (Volume 14), No. 5
FormatPDF
EUR
40
| USD
45
(VAT excl.)

This article considers the US tax consequences of restructuring debt outside bankruptcy. It is critical for both borrowers and lenders to take US federal income tax consequences into account in a restructuring, because, depending on how such a transaction is structured and other facts, those consequences may be favourable or adverse to either or both of the parties.