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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.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.