When the holder and issuer of a debt instrument engage in a workout of the debt, both may experience adverse tax results. Frequently, careful planning can minimize the taxes owed and increase the certainty of treatment as a result of a workout. We will discuss how the issuer and the holder can mitigate negative tax consequences that result from a workout.

Over the past eight months, the U.S. Treasury, the FDIC, and the Federal Reserve have discussed various ways to create liquidity and opportunities in an attempt to create a commercial market for troubled and illiquid mortgage loans. We will discuss some of the programs announced to date by the U.S. Treasury, FDIC, and the Federal Reserve, including the Public-Private Investment Program, and the potential tax consequences associated with these programs.

Program

8:00 AM - 8:30 AM   | Breakfast
8:30 AM - 10:00 AM | Seminar

topics

  • Tax aspects
  • Foreclosure and receivership in Maryland
  • Maryland realty transfer tax in foreclosure on property and on mezzanine debt
  • Legacy loan program

Moderator

Raymond G. Truitt, Partner, Real Estate Department

panelists

Jeffrey R. Davine, Partner, Real Estate Department
Thomas A. Hauser, Partner, Business and Finance Department
Wendi L. Kotzen, Partner, Tax Group
Bruce L. Benshoof, Of Counsel, Real Estate Department
Matthew G. Summers, Associate, Bankruptcy, Reorganization and Capital Recovery Group