Second Circuit’s reversal of controversial restructuring decision may boost confidence among distressed bond issuers.
USA, Banking, Capital Markets, Insolvency & Restructuring, Litigation, Latham & Watkins LLP, Higher Education Act 1965 (USA), Second Circuit
In the aftermath of recent municipal bankruptcies in which issuers proposed and/or implemented bankruptcy plans involving partial discharges of the issuer’s payment obligation on insured bonds, there has been increased focus on whether municipal bond interest paid by a bond insurer after the bankruptcy plan’s effective date continues to be tax-exempt.
USA, Capital Markets, Insolvency & Restructuring, Tax, Mintz, Bond (finance), Tax exemption, Interest, Municipal bond, Internal Revenue Service (USA)