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Plan Ahead: Third Circuit Denies Tax Exemption for Asset Sales Made Before Chapter 11 Plan
It has been often said that Chapter 11 of the Bankruptcy Code can be summarized as the “Three Rs,” precisely “reorganize, restructure, and rehabilitate.” In practicality, this includes steps such as “reducing headcount,” (firing people, without the euphemism), streamlining operations, reordering debt, and so on. One of the most critical components of such lifesaving steps is the divestiture of assets, in plain English, selling off assets that are either unprofitable and unwanted burdens or those items that can fetch high prices that can add quickly to the cash reserves of a troubled company.
Thus, asset sales are part and parcel of the typical Chapter 11 and include not only the sale of real estate, but also the sale of other “hard” assets, such as leased or financed equipment and personal property. Sometimes these sales are done as part of the ongoing process of rehabilitating the beleaguered entity, and other times they are accomplished pursuant to a court-approved Chapter 11 plan of reorganization. And therein lies the issue.
Turning to only real estate sales for the moment, the Bankruptcy Code makes clear that the real estate sold under the terms of a Chapter 11 plan is not subject to local transfer taxes. This is a neat money-saving benefit for the debtor and its creditors. But what if the sale is consummated before the plan is itself approved, yet the debtor nevertheless seeks to avail itself of the tax exemption? The answer to that controversial question is of great importance not only to the realty side of business, but has great implications for those in the equipment leasing and financing industry, since their transactions may be likewise affected.
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.