News & Analysis as of

Original Issue Discount

Kramer Levin Naftalis & Frankel LLP

Decoding Derivatives – Q3 2020

DC Avoids Getting Its Wires Crossed With Wirecard - Following its application to the Munich District Court to open preliminary insolvency proceedings, Wirecard was alleged to have been subject to a bankruptcy credit event....more

Skadden, Arps, Slate, Meagher & Flom LLP

Amending a Debt Instrument Trading at a Discount: Beware of Tax Consequences

In light of the current economic uncertainty, many companies are considering amending their credit agreements and other debt instruments either to minimize the likelihood of breaching financial covenants or to rework payment...more

Jones Day

Additional CDS Documentation Reforms On the Way

Jones Day on

ISDA proposes "de facto" category of original issue indebtedness as part of its CDS definitional reforms. On May 24, 2019, the International Swaps and Derivatives Association ("ISDA") published another credit default swap...more

Troutman Pepper

PIK Toggles Are Back: Uncertainty for AHYDO Savings and Catch-Up - Volume 2016, Issue 4

Troutman Pepper on

Issuers and their advisors need to be aware of the potential pitfalls and uncertainties of the applicable high-yield discount obligation rules, which can have the effect of permanently disallowing a portion of interest...more

Latham & Watkins LLP

New Treasury Regulations Make it Easier to Issue Tack-On Bonds or Loans

Latham & Watkins LLP on

On September 12, 2012, the Internal Revenue Service (IRS) issued final regulations (the Final Regulations) which make it easier to issue fungible tack-on debt instruments in situations where either the original debt...more

Blank Rome LLP

Recent Sentences for Federal Tax Crimes in 2014 – Part 2

Blank Rome LLP on

On Friday, we posted a review here of sentences imposed on defendants in 2014 for Foreign Bank Account, Tax Evasion, and Employment Tax crimes. In this post, we review sentences imposed on defendants in cases involving False...more

Dechert LLP

SDNY Bankruptcy Court Allows as a Claim Unamortized Original Issue Discount Generated in a Fair Market Value Exchange

Dechert LLP on

The Bankruptcy Court for the Southern District of New York overseeing the Residential Capital (“ResCap”) cases issued an opinion on November 15, 2013 (the “Opinion”) allowing the unamortized interest associated with original...more

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