Jones Day - Services - Bankruptcy Taxation

Tax considerations play a surprisingly important role in the entire bankruptcy process—from the decision to file, through the day-to-day operations of the debtor in bankruptcy, to the design and implementation of the plan of reorganization—even though distressed corporations are almost always losing money when they file for bankruptcy.

Jones Day's Bankruptcy Tax team has in recent years provided tax advice to debtors in a wide variety of important bankruptcies, including Avado Brands, Burlington Industries, Dow Corning, Globalstar, HQ Global, Kaiser Aluminum, Laidlaw, Loewen, LTV Steel, National Century Financial, NationsRent, Oglebay Norton, Pillowtex, USG, and Williams Communications. The Bankruptcy Tax team has also been instrumental in representing a number of lender and shareholder groups, including Société Générale (as agent to a syndicate of lenders to GenHoldings I, LLC, an affiliate of debtor NEGT) and Xcel Energy (parent of debtor NRG Energy).

Important tax issues are often first litigated in bankruptcy court, and Jones Day has been successful in a number of those cases, including the Dow Corning decision on the deductibility of postpetition interest on prepetition debt, the Elder-Beerman decision on the taxability of tenant allowances, and the Federated decision on the deductibility of "break-up" fees. Bankruptcy has also served in recent years as the forum for major distressed M&A transactions, and members of the Bankruptcy Tax team have provided tax advice to the buyer in connection with a number of recent transactions of this type, including International Steel Group's purchase out of bankruptcy of the assets of Bethlehem Steel and Weirton Steel.

Finally, members of the Bankruptcy Tax team are the authors of Corporate Bankruptcy (BNA Tax Management Portfolio No. 790), as well as numerous articles on recent developments in bankruptcy tax, and they speak regularly on bankruptcy tax subjects at tax institutes and seminars around the country.

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Lawyers Staff Overview Experience Professionals News Publications Main Practice Tax	Tax considerations play a surprisingly important role in the entire bankruptcy process—from the decision to file, through the day-to-day operations of the debtor in bankruptcy, to the design and implementation of the plan of reorganization—even though distressed corporations are almost always losing money when they file for bankruptcy. Jones Day's Bankruptcy Tax team has in recent years provided tax advice to debtors in a wide variety of important bankruptcies, including Avado Brands, Burlington Industries, Dow Corning, Globalstar, HQ Global, Kaiser Aluminum, Laidlaw, Loewen, LTV Steel, National Century Financial, NationsRent, Oglebay Norton, Pillowtex, USG, and Williams Communications. The Bankruptcy Tax team has also been instrumental in representing a number of lender and shareholder groups, including Société Générale (as agent to a syndicate of lenders to GenHoldings I, LLC, an affiliate of debtor NEGT) and Xcel Energy (parent of debtor NRG Energy). Important tax issues are often first litigated in bankruptcy court, and Jones Day has been successful in a number of those cases, including the Dow Corning decision on the deductibility of postpetition interest on prepetition debt, the Elder-Beerman decision on the taxability of tenant allowances, and the Federated decision on the deductibility of "break-up" fees. Bankruptcy has also served in recent years as the forum for major distressed M&A transactions, and members of the Bankruptcy Tax team have provided tax advice to the buyer in connection with a number of recent transactions of this type, including International Steel Group's purchase out of bankruptcy of the assets of Bethlehem Steel and Weirton Steel. Finally, members of the Bankruptcy Tax team are the authors of Corporate Bankruptcy (BNA Tax Management Portfolio No. 790), as well as numerous articles on recent developments in bankruptcy tax, and they speak regularly on bankruptcy tax subjects at tax institutes and seminars around the country.