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, offshore 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 tax issues that should be considered when a company seeks to restructure its external debt obligations. It discusses the impact of debt waivers (releases), the application of the loan relationships regime to such eventualities and the possible availability of reliefs where there is an insolvency or where a debt is swapped for equity. This Practice Note also looks at the tax issues arising in situations involving connected parties, 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 where a change in ownership of the borrower group may be involved.

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.