Foley Partner Peter J. Elias led an audio conference on May 21, 2009 hosted by The Beard Group Law and Business Publishers and The Troubled Company Reporter. The audio conference, titled “Buyer Beware: Key Tax Issues for Private Equity Investments in Distressed Debt”, addressed the following issues:
- Tax issues for purchases of debt by “related” parties
- New tax law developments relating to cancellation of debt income
- Important tax traps (and surprising consequences) for investors and borrowers arising in connection with debt modifications
- Ordinary income versus capital gain treatment for accrued “market discount” on discount debt purchased in secondary markets
- Accrual of interest income for holders of debt
- Timing rules and special elections available for debt holders
- Special rules applicable to purchases of deeply discounted debt, such as defaulted debt
- Special tax rules and risks posed for non-U.S. investors in distressed debt funds
For more information on the program, please visit The Beard Group Law and Business Publishers Web site.
Related Insights
December 24, 2025
Health Care Law Today
Gender-Affirming Care: Multi‑State Lawsuit Challenges HHS Declaration
As previously discussed in Foley’s healthcarelawtoday, on December 18, 2025, the U.S. Department of Health & Human Services (HHS) held a press conference focused on what it defined as “sex rejection procedures” (SRPs), also known as gender-affirming care (GAC) for minors, and outlined next steps.
December 23, 2025
Energy Current
FERC Opens New Paths for Co-Located Loads in PJM: What Data Center and Power Generation Developers Need to Know
Key Takeaways FERC has ordered PJM to overhaul its tariff framework for co-located generation and large loads, finding existing rules…
December 23, 2025
Foley Viewpoints
The Rush to Exit: PE Firms Pick Up the Pace in 2025
Key Points: PE firms are moving to sell portfolio companies on an accelerated timeline in 2025 after years of much longer hold…