Jenny Doak

This Practice Note outlines the key tax issues relevant to acquisitions of distressed debt portfolios, referred to as non-performing loans (NPLs). It considers appropriate acquisition vehicles and compares the tax consequences of using UK corporate vehicles, offshore vehicles or tax transparent vehicles. It also analyses the financing options available to fund the acquisition and the various other associated costs involved. This Practice Note is produced in partnership with Jenny Doak of Weil Gotshal & Manges.

This Practice Note outlines the key tax issues that should be considered when a company struggling to repay external debt seeks to restructure its external debt obligations. It focuses on formal debt waivers (debt releases), looking at the application of the loan relationships rules to such eventualities and the possible availability of relief where there is insolvency or where debt is swapped for equity. It also looks at the tax issues arising where connected parties are involved, where the ‘deemed release’ provisions are potentially triggered. This Practice Note concludes by considering what to keep in mind when debt is being renegotiated and in situations that might involve a change in ownership of the borrower group.

This Practice Note outlines the key tax issues that are relevant where a creditor seeks to enforce its security over the assets of a corporate borrower in distress. It considers the different types of enforcement mechanisms available to a creditor including exercising a power of sale, appointing a receiver, administration and foreclosure. It also considers the situation where a borrower agrees to transfer property to a creditor in satisfaction of a debt owed.

This checklist lists out the key tax issues to consider when dealing with distressed corporate debt. It is intended to provide a quick and high-level reference guide to the key tax considerations that ought to be considered when acting for clients involved in the acquisition, restructuring, release or enforcement of distressed debt. This checklist is produced in partnership with Jenny Doak of Weil Gotshal & Manges.