Ninth Circuit Court of Appeals reverses precedent – courts can recharacterize debt as equity to the extent allowed under state law

Introduction

Filed under:
USA, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Unsecured debt, Debt, Maturity (finance), Ninth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
Authors:
K. Derek Judd , Jordan A. Kroop
Location:
USA
Firm:
Squire Patton Boggs
Tax regulation alert – new tax rules to benefit debtors

Pension issues in the American Airlines (AMR) bankruptcy1 have resulted in the Internal Revenue Service (IRS) issuing new final regulations, effective November 8, 2012 (Final Regulations), which broadly impact all debtors facing underfunded pension plan obligations. The Final Regulations provide chapter 11 bankruptcy debtors facing distress terminations of their tax-qualified defined benefit pension plans with the additional option of amending the plans to eliminate accelerated payment options.

Filed under:
USA, Employee Benefits & Pensions, Insolvency & Restructuring, Tax, Squire Patton Boggs, Bankruptcy, Debtor, Defined benefit pension plan, Internal Revenue Service (USA), Pension Benefit Guaranty Corporation, Internal Revenue Code (USA)
Authors:
Stephen D. Lerner , Thomas J. Salerno , K. Derek Judd , Bradley A. Cosman
Location:
USA
Firm:
Squire Patton Boggs
Tax regulation alert – new tax rules to benefit debtors

Pension issues in the American Airlines (AMR) bankruptcy1 have resulted in the Internal Revenue Service (IRS) issuing new final regulations, effective November 8, 2012 (Final Regulations), which broadly impact all debtors facing underfunded pension plan obligations. The Final Regulations provide chapter 11 bankruptcy debtors facing distress terminations of their tax-qualified defined benefit pension plans with the additional option of amending the plans to eliminate accelerated payment options.

Filed under:
USA, Employee Benefits & Pensions, Insolvency & Restructuring, Tax, Squire Patton Boggs, Bankruptcy, Debtor, Defined benefit pension plan, Internal Revenue Code (USA), Internal Revenue Service (USA), Pension Benefit Guaranty Corporation
Authors:
Stephen D. Lerner , K. Derek Judd
Location:
USA
Firm:
Squire Patton Boggs