Restructurings & Bankruptcies Taxation

Contact(s)

Cadwalader tax attorneys have extensive experience working with our Financial Restructuring team on the special tax issues of troubled and insolvent corporations and other entities, including preserving debtors' net operating losses and other tax attributes and achieving viable restructurings. We represent both debtors and creditors, as well as investors, committees and other creditor groups, in cross-border restructurings, bankruptcy proceedings, workouts and other distressed situations.

Our practice is international in scope and our domestic offices work closely with our London attorneys in connection with cross-border financings.  By using a multidisciplinary approach, our clients benefit from Cadwalader’s strong experience in finance, capital markets, financial restructuring, bankruptcy, litigation, regulation, corporate transactions, and tax structuring.

Given the effort expended when structuring transactions to maximize tax and pension-related efficiencies for all parties, it is imperative to take those efficiencies into account when developing a restructuring strategy. Our attorneys have extensive experience in advising a variety of clients on the tax ramifications of workouts, foreclosures and bankruptcies. Our expertise encompasses all bankruptcy-related tax matters, including international tax, which is critical to workouts involving restructuring foreign debt or investment of new money by foreign companies, as well as ERISA issues, and REMIC tax issues.

  • Assured Guaranty, the largest creditor of Puerto Rico, in Puerto Rico’s restructuring of approximately $73 billion of outstanding bond debt.
  • MBIA in connection with its exposure to two distressed CLOs that collectively issued over $1 billion in debt, including the pending voluntary chapter 11 cases filed by the Zohar funds in the Bankruptcy Court for the District of Delaware.
  • Hemen Holding, the largest shareholder of Seadrill, in Seadrill’s successful $13 billion chapter 11 restructuring and related Bermuda scheme, and subsequently in connection with the February 2021 chapter 11 filing of Seadrill and its affiliated debtors.
  • Kingsland, a major shareholder and DIP lender, in the chapter 11 cases for Avianca, including negotiating a $2 billion two-tranche DIP facility on behalf of Kingsland.
  • A committee of 14 senior secured bank lenders holding approximately 95% of the $1 billion of debt across more than 20 credit facilities in the chapter 11 cases of Toisa and its affiliates.
  • The ad hoc committee of convertible noteholders in the restructuring of $780 million of bond debt of Roust.
  • LyondellBasell as lead debtor's counsel in its chapter 11 case.
  • Centerbridge Partners on cross-border tax issues in connection with the financial restructuring of ATU.
  • The Official Committee of Unsecured Creditors of Truvo and its affiliated debtors in connection with their chapter 11 proceedings in the Bankruptcy Court for the Southern District of New York.
  • Xerium Technologies in its prepackaged chapter 11 cases and related $80 million DIP financing.
  • The U.S. Department of Treasury and the Presidential Task Force on the Auto Industry in connection with the restructurings of Chrysler, General Motors and Delphi.
  • Icahn Associates and certain of its affiliates as the largest pre-petition and post-petition lender in the chapter 11 reorganization of Blockbuster.
  • The U.S. Department of Treasury in the restructuring and disposition of the Treasury’s Capital Purchase Program investments in a number of financial institutions, including its $2.3 billion investment in CIT.
  • Vincent’s Catholic Medical Centers in its chapter 11 reorganization.
  • Northwest Airlines in its chapter 11 cases.
  • Caribbean Petroleum in its chapter 11 cases.
  • JPMorgan Chase as lender in Station Casinos chapter 11 cases and participation, with Fertitta Gaming, as the successful bidder on certain Station Casinos properties.
  • Merrill Lynch as agent lender in BLB/Twin Rivers Casinos chapter 11 cases.
  • Lehman as agent lender for approximately $2 billion debt in the Intrawest restructuring.
  • The agent lender for $1 billion debt in the LandSource chapter 11 cases.
  • Morgan Stanley and JPMorgan in the restructuring of secured debt of Capital Trust.
  • Ice Edge Holdings in its bid to acquire the National Hockey League Phoenix Coyotes franchise.
  • Bond holder group in connection with a DIP financing for VeraSun.
  • Creditors regarding tax advice in the restructuring of Heartland Automotive.
  • The ad hoc committee of senior secured bondholders in Black Gaming’s chapter 11 case.
  • CIFG in its settlement with credit default swap counterparties and bondholders holding 98% of its gross par outstanding of ABS CDS exposure, successfully commuting approximately $12 billion in notional exposure.

NEWS

News Releases

view more »

RESOURCES

Newsletters

view more »

3 Attorneys

Blakemore, Adam Partner London
T. +44 (0) 20 7170 8697
Howe, Mark P. Partner Washington
T. +1 202 862 2236
Swartz, Linda Z. Partner New York
T. +1 212 504 6062

Contact(s)