Section 125 Continuity of Interest

• Library: Business Transitions 2009 Supp

Final regulations set forth when senior and junior creditor claims that have been converted to equity will count toward the required continuity of interest both in and outside bankruptcy proceedings when the target corporation is insolvent. Senior creditor claims are treated as equity (proprietary interests) for continuity-of-interest purposes. Treas. Reg. § 1.368-1(e); T.D. 9434, 2009-4 I.R.B. 339; 73 Fed. Reg. 75,566–75,568 (Dec. 2, 2008)...