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Perspective

Key Considerations for Midstream Contracts in Today’s Distressed Environment

Jul 10, 2020

Partner Omar Samji and counsel Angela M. Heywood Bible published an article in Currents, the newsletter of the Corporate Counsel section of the State Bar of Texas. The article describes how midstream oil and gas companies can find provisions in their midstream contracts that may provide remedies and relief in light of the downturn the energy industry is experiencing.

Perspective

UK Corporate Insolvency and Governance Act 2020

Jul 09, 2020

On 26 June 2020 the Corporate Insolvency and Governance Act 2020 ("the Act") introduced the biggest reforms in a generation of UK insolvency law.  It also implemented several temporary changes to both insolvency and company law to deal with solvency and governance pressures resulting from the coronavirus pandemic ("COVID-19".  These reforms were fast-tracked through the legislative process in the UK, representing a clear move towards a more debtor-friendly, "rescue culture" for companies facing financial difficulty.  In some respects they align UK insolvency law more closely with US insolvency law, in particular Chapter 11 proceedings under the US Bankruptcy Code. Our earlier briefing, COVID-19 Changes Announced to UK Insolvency Law and for AGMs, provided some background to these new reforms.

Perspective

UK Government’s Summer Statement Introduces Temporary VAT and Stamp Duty Reductions

Jul 09, 2020

On 8 July 2020, the UK Chancellor of the Exchequer delivered a Summer Statement setting out the UK Government's 'Plan For Jobs', a package of measures intended to protect jobs and provide relief to sectors particularly hard-hit by COVID-19. The tax measures include cuts to VAT for the hospitality and tourism sectors and a temporary extension of the stamp duty land tax ("SDLT") nil-rate band for purchases of residential property in order to stimulate the UK housing market. There were also incentives to employers to create and retain jobs, particularly for 16–24 year olds at risk of long-term unemployment.

Perspective

Investing in Distressed Commercial Real Estate in the U.S.

Jul 08, 2020

Partner Kris Ferranti moderated a discussion with fellow lawyers from Shearman & Sterling’s Real Estate, Tax, Financial Restructuring & Insolvency and Environmental practices about the opportunities that exist for investors in distressed commercial real estate assets and the legal issues and considerations they must keep in mind.

Perspective

Temporary Regulations Provide NOL Carryback Waiver Relief to Consolidated Groups

Jul 08, 2020

On July 2, 2020, the U.S. Internal Revenue Service (the IRS) and the U.S. Treasury Department (“Treasury”) promulgated temporary regulations under section 1502 of the Internal Revenue Code of 1986, as amended (T.D. 9900) (the “Code,” and such regulations, the “Temporary Regulations”) regarding waivers of consolidated net operating loss (CNOL) carrybacks. The Temporary Regulations allow a consolidated group (the “acquiring consolidated group”) that acquires a member (the “acquired member”) from another consolidated group (the “former consolidated group”) to elect to waive the carryback of post-acquisition CNOLs that are properly attributable to the acquired member to a taxable year of the former consolidated group. The Temporary Regulations address issues created by the five-year NOL carryback period that was retroactively added by the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”).

Perspective

Navigating Systemic Risk: Protecting Financial Institutions from Avoidable Losses

Jul 07, 2020

COVID-19 has acted as an accelerator, bringing into play scenarios which were previously only contingencies and making contingencies of (and requiring planning for) situations which were previously barely imaginable. The debt build-up from the corporate sector, in many cases kept going through governmental life-support, means that non-performing loans are likely to explode. Numerous companies are at levels of debt that mean they cannot realistically take on much more. Preferred equity investments are possible but provide less protection for the banks.

Perspective

A Step Too Far? The IRS Proposes Non-Deductibility of Disgorgement

Jul 07, 2020

Partner Philip Urofsky and counsel Richard Gagnon authored an article for Bloomberg Tax titled “A Step Too Far? The IRS Proposes Non-Deductibility of Disgorgement.” The article argues that if proposed rules allowing deductions for disgorgement and forfeiture are retained, those disallowances will become yet another, albeit hidden, penalty. This would contravene sound public policy and the plain language of the statutory exception for restitution, the authors state.

Perspective

Urofsky Interviewed in Global Anti-Bribery Corruption Insights Podcast

Jul 06, 2020

Partner Philip Urofsky recently appeared in The Global Anti-Bribery and Corruption Insights Series podcast, hosted by consulting and accounting firm Nexdigm. He discussed the stress created by the ongoing COVID-19 pandemic on the U.S. economy, organizations, employees, and the government, and how it has led to an increased risk of corruption. The discussion covered the risks associated with various stimulus packages announced by the government to revive the economy alongside measures taken by authorities to enforce anti-corruption measures.