Tax and Legal Restructuring Services
Stakeholder considerations
Restructuring is a broader
engagement, focusing primarily
on the strategic, financial and
operational management
of a struggling, but viable,
business with the objective of
returning it to profitability. Every
stakeholder's tax and legal
considerations are required to
be considered while planning
restructuring.
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Company
| | | |
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Accelerate tax refunds, defer payments.
Unlock trapped cash.
Restructure, cancel, swap debt tax neutrally.
Preserve tax attributes (e.g. tax losses in
operative/corporate reorganization).
Maintain interest deductions.
Increase general tax efficiency.
Ensure compliance with directors duties.
Understand contractual rights and obligations and
minimize risks.
Understand employee obligations.
Minimize litigation risk.
Shareholder
Utilize losses in case of a sale/squeeze out.
Preserve a high tax base in company
reorganization.
Minimize de-grouping charges/claw backs.
Minimize liability risk in a sale/purchase.
Current lenders
Utilize losses on loan when default, sale or
swap occurs.
Minimize taxes on value increase after debt
to equity swap.
Understand contractual rights and
obligations.
New lenders
Minimize taxes on a value increase after loan
acquisition.
Minimize taxes on debt to equity swap of a
loan acquired below nominal value.
Minimize withholding taxes on future interest
income.
Understand contractual rights and obligations.
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4 | Tax and Legal Restructuring Services
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