Abstract
The restructuring of a troubled company's debt, a change in its ownership, or bankruptcy can trigger significant tax consequences for the company and other stakeholders. For example, a modification of the terms of a company's debt can create original issue discount, causing debtholders to recognize taxable income without receiving any cash. But with a thorough analysis and careful planning, these issues can be reduced or avoided in a manner consistent with the business objectives.
- © 2002 Pageant Media Ltd
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