Cancellation of debt a key element of most restructurings generally triggers taxable income. The German tax authorities had issued an administrative decree (the "Tax Restructuring Decree" - Sanierungserlass), however, declaring that, upon the satisfaction of certain requirements and conditioned on forfeiture of any loss carry forwards, the cancellation of debt income ("CODI") would not be taxed.
In In re Cook, 2014 Bankr. LEXIS 67 (B.A.P. 8th Cir. Jan.
USA, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Eighth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel
In a recent decision [1] arising from the In re Residential Capital LLC, et al.