Tax in Distressed Situations
A company that is struggling to meet its debt obligations may be weighing up the different options to service, refinance, or restructure its existing debt. Whilst tax may not be front of mind, the potential tax consequences of the options available to companies in distressed situations or their creditors should not be overlooked. These guides provide a high-level overview of important tax considerations for debt restructurings, enforcement, acquisitions of debt and insolvency proceedings for both debtors and creditors from UK, US, French, Luxembourg, Swiss, Belgian and Dutch tax perspectives.
These jurisdictional guides (i) are intended only as a general high-level guide to the key tax issues to consider in distressed scenarios in the relevant jurisdictions, (ii) do not purport to provide a comprehensive overview, and (iii) are not intended to be, and should not be, relied upon. Independent legal advice should be sought with respect to the tax implications of any transaction. The guides are based on law applicable and what is understood to be the practice of the applicable tax authority as of 13 February 2025, both of which are subject to change, possibly with retrospective effect.
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