On April 18, the FDIC released a report examining how it could have structured an orderly resolution of Lehman Brothers Holdings Inc. using the orderly liquidation authority under Title II of theDodd-Frank Act. FDIC Release.

On April 21, the Fed issued a request for public information and comment on two bankruptcy-related studies required under the Dodd-Frank Act. One study will focus on the resolution of financial companies in Chapter 7 or Chapter 11 bankruptcy, and the other will focus on international coordination of the resolution of systemically important financial companies under the Bankruptcy Code and applicable foreign law. Comments must be submitted within 30 days after publication in the Federal Register.

In the European Union, Stat e interventions in the market in the form of subsidies or other economic advantages are generally prohibited, but companies can receive aid from Member States if the aid is approved by the European Commission.

Since 2005, pushed by the insolvencies and rescues of large Italian corporations such as Parmalat, Cirio and Alitalia, the Italian legislature has introduced effective tools aimed at preserving the debtor’s assets and ensuring the successful reorganisation of a debtor’s business to the benefit of all the parties involved.

Tax authorities have perceived recently that international corporate groups are going through internal business restructurings in large part or in whole to achieve income tax savings.

The German Government has introduced a reform of the German Insolvency Code (Insolvenzordnung– InsO) in order to further facilitate business restructurings in Germany.

In Germany, the restructuring of companies or groups in financial crisis is subject to significant tax risks.

It has become common in financings for companies to utilise a capital structure with multiple layers or tranches of debt.

One thing companies often overlook in a restructuring plan is the role of communications.

Chapter 15 of the US Bankruptcy Code enables debtors that are already subject to a foreign insolvency proceeding to receive assistance from US courts in order to protect and administer their property located in the United States.