Recent Regulatory Updates in Distressed Debt and Restructurings: What Lies Ahead in 2017
In today’s global market overwhelmed with an unprecedented combination of crisis, volatility and uncertainty, majority of professionals and keen observers seem to notice that distressed debt will continue into 2017. An uptick in restructuring activities is also one of the significant developments investors should watch out for in the coming years. In order for investors to have the strategic advantage in debt opportunities, they need to understand key trends, best practices for distressed investing and loan sales, and the pitfalls to avoid, among others.
This course seeks to summarize some of the significant issues and developments relating to distressed debt and restructurings. A panel of thought leaders and practitioners assembled by The Knowledge Group will provide a refresher on basic concepts as well as insights on recent developments. The panel will also discuss recent judicial decisions, major chapter 11 cases, and the tax aspects of restructuring transactions.
Key topics include:
- Distressed Debt Market Overview
- Negotiating a Restructuring Agreement: Opportunities and Risks
- Implementation of Strategies to Influence Subsequent Restructurings, Reorganizations, Bankruptcies and Related Litigation
- What Happens If Your Borrower Files Bankruptcy?
- Preparing for Bankruptcy Risks and Industry Issues
- Recent Court Decisions and Possible Implications
- Stern v. Marshall
- Wellness Int’l
- Latest Developments in Fraudulent Transfer Law
- Best Compliance Practices
- Tax Aspects of Distressed Debt and Restructurings
Rick Antonoff, Partner
Blank Rome LLP
- What is the appropriate rate of interest to cram down secured creditors?
- What are the limits of safe harbors for financial contracts under the Bankruptcy Code?
- Can foreign companies file for bankruptcy in the United States?
- Limitations on out-of-court restructuring under Section 316(b) of the Trust Indenture Act
Richard Nugent, Partner
Cadwalader, Wickersham & Taft LLP
- Section 382 of the Code, change of ownership in the company
- Restructurings and creditor positions –acquire stock, assets?
Michael Kearney, Counsel
Satterlee Stephens LLP
Accrual Requirement No Reasonable Expectation of Payment
- Obama Administration’s FY 2017 Budget proposal to require current inclusion in income of accrued market discount.
- Whether Holder may forego market discount accrual on debt purchased at a significant discount because the debt is more like an equity investment or open transaction treatment applies.
- Non-Accrual of Interest and Original Issue Discount and the Doubtful Collectibility Doctrine.
- Allocating Payments between Accrued Interest and Principal.
Code Section 108: Exclusion of Cancellation of Debt (“COD”) Income
- IRS Chief Counsel Advice 201604017 (January 2016)
- IRS Action On Decision 2015-001 (February 2015)
Debt Restructurings - Disregarded Entities and Their Owners
- IRS Regulations effective June 10, 2016
- Majestic Star Casino, LLC (3rd Circuit Court of Appeals; 2013)
Who Should Attend:
- Distressed Securities Professionals
- Financial Reporting Professionals
- Bankruptcy and Restructuring Lawyers
- Bankruptcy and Restructuring Professionals
- Corporate Counsel
- Financial Counsel
- Portfolio Managers
- Senior Executives
Rick Antonoff represents secured and unsecured creditors, official and ad-hoc committees, investors, and other parties in bankruptcy proceedings, out-of-court restructuring, commercial litigation, financing, and distressed mergers and acquisitions. He advises clients on insolvency issues arising in structured finance and derivatives transactions as well as cross-border restructuring. Rick represents creditors prosecuting claims and defending avoidance actions in bankruptcy cases and exercising default remedies, including UCC and real property foreclosures. Additionally, he has significant experience in complex restructuring, inter-creditor issues, netting, and setoff.
Rick Antonoff represents secured and unsecured creditors, official and ad-hoc committees, investors, and other parties in bankruptcy proceedings, out-of-court restructuring, …
Richard Nugent is a transactional lawyer with significant expertise in the tax aspects of public and private corporate mergers, acquisitions, and spin-offs. He also has experience advising clients on cross-border tax strategies, the tax consequences of restructurings and bankruptcies, and financing transactions.
Richard also has authored or co-authored several articles on U.S. tax issues.
Richard received his LL.M., with distinction, from Georgetown University Law Center; his J.D., with honors, from Rutgers University School of Law (now Rutgers Law School); and his B.A., summa cum laude, from Saint Peter's College (now University). He served as a clerk to The Honorable Richard F. Suhrheinrich of the U.S. Court of Appeals for the Sixth Circuit and The Honorable Robert P. Ruwe of the United States Tax Court.
Richard Nugent is a transactional lawyer with significant expertise in the tax aspects of public and private corporate mergers, acquisitions, …
Michael Kearney is of Counsel to Satterlee Stephens LLP and practices tax law with a focuse on transactional tax matters.
Mr. Kearney advises on the tax aspects of domestic and cross-border mergers and acquisitions, joint ventures, debt financings, and financial restructurings involving corporations, partnerships and LLCs. He counsels clients on matters involving controlled foreign corporations, passive foreign investment companies, effectively connected income, unrelated business taxable income, and income tax treaties.
In the private investment funds area, Mr. Kearney has advised both fund sponsors and significant LP investors on the tax structuring of private equity fund and hedge fund formations, co-investments, and secondary transactions for domestic and foreign funds. He also represents non-U.S. resident individuals on strategic tax planning and structuring related to U.S. investments.
Michael Kearney is of Counsel to Satterlee Stephens LLP and practices tax law with a focuse on transactional tax matters. …
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Method of Presentation:
NASBA Field of Study:
Specialized Knowledge & Applications
NY Category of CLE Credit:
Areas of Professional Practice
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About Blank Rome LLP
With over 600 attorneys in fourteen offices, Blank Rome represents businesses ranging from Fortune 500 companies to start-up entities. Founded in 1946, Blank Rome advises clients on all aspects of business, including commercial and corporate litigation; consumer finance; M&A, and securities; environmental, energy, and natural resources; finance, restructuring, and bankruptcy; government contracts; insurance coverage; intellectual property and technology; labor and employment; maritime and international trade; matrimonial; products liability, mass torts, and insurance; political law and policy; real estate; tax, benefits, and private client; and white collar defense and investigations.
About Cadwalader, Wickersham & Taft LLP
Established in New York in 1792, Cadwalader, Wickersham & Taft LLP is a leading advisor to corporations and financial institutions, providing innovative solutions to complex legal issues. With offices in strategically located financial and governmental centers, the firm is well positioned to offer top-flight services to clients conducting business across the globe.
About Satterlee Stephens LLP
Since 1894, Satterlee Stephens LLP has been building a history of success, helping clients solve challenging legal problems and achieve their commercial and personal goals. In our 120-year history, we have represented numerous companies and individuals recognized as great American success stories. The firm represented Mark Twain and was responsible for both naming and incorporating General Motors. A partner, Harlan Fiske Stone, went on to become Chief Justice of the U.S. Supreme Court. This record of success continues.
Today, we represent companies that are leaders in their fields, including major global financial institutions, multinational consumer products companies, information technology companies, leading pharmaceutical and medical device companies, publishers, insurers, media companies, and some of the world’s largest fashion and apparel companies. We are a dynamic, mid-sized firm, offering clients a value proposition larger firms often find difficult to achieve. We are nimble, innovative and efficient, tailoring the team to fit the matter at hand. Our approach to the practice of law is forward thinking and emphasizes four key elements: quality, service, results and cost-effectiveness. Our goal is to achieve our clients’ immediate objectives, while also protecting and advancing their long-term interests. That is our legacy—and our promise today and tomorrow. We can help you succeed.