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)
Court Broadens Interpretation of Code Sections Invalidating Ipso Facto Contract Provisions
USA, Insolvency & Restructuring, Litigation, Locke Lord LLP, Bankruptcy, Debtor, Collateral (finance), ISP, Interest, Swap (finance), Deed, Default (finance), Subsidiary, Lehman Brothers cases, Lehman Brothers, United States bankruptcy court, US District Court for the Southern District of New York