Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Part Two of a Two-Part Article
In our article that appeared in last month's Bankruptcy Strategist, we discussed the special rule contained in Section 382(l)(5) with respect to the use of net operating losses by a company that has restructured under the protection of the bankruptcy court. See “In Search of the Holy Grail, Musings on Section 382(l)(5)“, 22 The Bankruptcy Strategist Number 2, 1. As discussed in that article, Section 382(l)(5) requires a bankrupt corporation to meet special stock ownership rules which forces the bankrupt company to track the ownership of its stock and its “qualified indebtedness” (“old and cold” and “ordinary course” debt) in the hopes of preventing dispositions which might render Section 382(l)(5) inapplicable. Internal Revenue Service regulations ameliorate the harsh holding period rules with respect to “qualified indebtedness” by permitting some trading of such indebtedness, so long as a person who acquires debt that would otherwise qualify as “qualified indebtedness” does not wind up being a 5% shareholder under the plan of reorganization. Where the stock, debt and claims against a bankrupt company are traded, companies execute lock up agreements with their stockholders or request orders from the bankruptcy court to restrict trading in the stock, debt or claims so as to protect its net operating loss carry forwards. Often, out of an excess of caution, the orders requested have been overly broad and have disrupted trading in such debt and claims.
A Model NOL Order
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
As businesses across various industries increasingly adopt blockchain, it will become a critical source of discoverable electronically stored information. The potential benefits of blockchain for e-discovery and data preservation are substantial, making it an area of growing interest and importance.