As companies are navigating the current economic and market conditions, many are faced with adjusting their capital structure to manage liquidity and put themselves in a better position to handle an unpredictable future. In this session, we will begin with a review of basic income tax concepts applicable to debt instruments and borrowing. We will then discuss US income tax issues commonly encountered by oil and gas companies when they look to restructure debt through negotiation with creditors or a bankruptcy proceeding. From delaying interest payments to a Chapter 11 reorganization, transactions that involve debt also involve complex tax rules that can either be an opportunity or a trap.
Review basic tax concepts related to debt instruments
Recognize certain tax implications of debt modifications and exchanges
Analyze the application of cancellation of debt to corporations and partnerships
Consider industry specific issues in the context of a debt restructuring