Description
Book SynopsisAccountants and financial managers are often the first professionals to realize that a financial problem exists within a corporation but must be familiar with the various alternatives available to clients before they can offer solutions. Completely updated,
Bankruptcy and Insolvency Accounting, Seventh Edition, Volume 1 provides detailed information on SOP 90-7 and FASB statements 141, 142, and 144 and revisions made in CSSR 93-1 by CSSR 03-1. The process of corporate restructuring is thoroughly described for controllers, CEOs, CFOs and CPAs with small businesses as clients.
Table of ContentsPreface xxxv
Acknowledgments xxxix
About the Author xli
PART ONE BANKRUPTCY AND INSOLVENCY ENVIRONMENT 1
1 Accountant’s and Financial Advisor’s Role in Perspective, 3
1.1 Introduction, 3
1.2 Scope of Coverage, 4
Accounting Services, 5
1.3 Need for Financial Advisor’s Services, 5
1.4 Financial Advisor Defined, 6
Topical Overview, 7
1.5 Economic Causes of Business Failure, 7
1.6 Business Turnaround, 7
1.7 Alternatives Available to a Financially Troubled Business, 7
1.8 Comparison of Title 11 of the United States Code with the Bankruptcy Act, 11
1.9 Retention of the Financial Advisor and Fees, 13
1.10 Accounting Services, 14
1.11 Special Investigation and Financial Reporting, 14
1.12 Tax Awareness, 14
Responsibilities of Independent Accountant, 15
1.13 Responsibilities in General, 15
1.14 Observation of Business Decline, 15
1.15 Responsibility to Client, 16
1.16 Advice on Selection of Attorneys, 17
1.17 Other Steps to “Manage” the Proceedings, 18
Professional Certification, 18
1.18 Certified Insolvency and Restructuring Advisors, 18
1.19 Certification in Distressed Business Valuation, 20
2 Economic Causes of Business Failures, 21
2.1 Introduction, 21
Definition of Successful and Unsuccessful Business, 21
2.2 Failure Defined, 21
2.3 Business Failure Statistics, 23
Causes of Financial Difficulty, 24
2.4 Introduction, 24
2.5 Size of Business Failures, 26
2.6 Geographic Distribution of Business Failures, 29
2.7 Age of Business Failures, 30
2.8 Business Failures and Economic Conditions, 30
2.9 Characteristics of the Economic System, 33
2.10 Casualties, 34
2.11 Inside Underlying Causes, 34
2.12 Dishonesty and Fraud: Planned Bankruptcies, Sham, 42
2.13 Other External Causes, 42
Stages of Financial Failure, 43
2.14 Introduction, 43
2.15 Period of Incubation, 44
2.16 Cash Shortage, 45
2.17 Financial or Commercial Insolvency (Equity Definition), 45
2.18 Total Insolvency (Bankruptcy Definition), 45
2.19 Bankruptcy or Out-of-Court Workout, 45
Detection of Failure Tendencies, 46
2.20 Introduction, 46
2.21 Trend Analysis, 46
2.22 Analysis of Accounting Measures, 48
2.23 Analysis of Management, 64
2.24 Importance of Forecasts, 64
2.25 Other Factors, 65
PART TWO LEGAL ASPECTS OF BANKRUPTCY AND INSOLVENCY PROCEEDINGS 67
3 Turnaround Process, 69
3.1 Objectives, 69
Stages of Turnaround Process, 69
3.2 Introduction, 69
3.3 Stage 1: Management Change, 71
3.4 Stage 2: Situation Analysis, 72 Competitive Ability, 77
3.5 Stage 3: Design and Selection of Turnaround Strategy, 78
3.6 Stage 4: Emergency Action Stage, 81
3.7 Stage 5: Business Restructuring Stage, 87
3.8 Stage 6: Return-to-Normal Stage, 89
Characteristics of Effective Turnaround Managers, 90
3.9 Introduction, 90
3.10 Organizational Leader, 91
3.11 Ability to Develop and Implement Strategy, 91
3.12 Entrepreneurial Instincts, 91
3.13 “Hands-On” Operating Experience, 91
3.14 Effective Negotiating Skills, 92
3.15 Good Interviewing Skills, 92
3.16 Action Orientation, 92
3.17 Trustworthiness and Fairness, 93
Techniques Used in Business Turnarounds, 94
3.18 Introduction, 94
3.19 Lean Manufacturing, 94
3.20 Activity-Based Costing, 98
3.21 Retail Store “Four-Wall” Analysis, 102
3.22 Business Process Reengineering, 108
Summary and Recommendations, 109
3.23 Summary, 109
4 Nonbankruptcy Proceedings, 111
4.1 Introduction, 111
Out-of-Court Settlements, 111
4.2 Nature of Proceedings, 111
4.3 Importance of an Early Meeting Date, 113
4.4 Preparation for the Creditors’ Meeting, 113
4.5 Appointment of Creditors’ Committee, 114
4.6 Duties and Functions of Creditors’ Committee, 115
4.7 Interim Management, 116
4.8 Committee Management, 116
Preparation of a Plan of Settlement, 118
4.9 Introduction, 118
4.10 Conditions of Agreement, 119
4.11 Out-of-Court Agreement Prior to Chapter 11 (Prepackaged Bankruptcy), 120
Advantages and Disadvantages, 121
4.12 Advantages, 121
4.13 Disadvantages, 121
Assignment for the Benefit of Creditors (State Court), 122
4.14 Introduction, 123
4.15 Duties, Functions, and Procedures of Assignee, 122
4.16 Discharge of Debts, 123
4.17 Advantages, 124
4.18 Disadvantages, 125
5 Nature of Bankruptcy and Insolvency Proceedings, 127
Origin, 127
5.1 Introduction, 127
5.2 United States, 128
5.3 Insolvency and Bankruptcy Laws Today, 130
5.4 Current Bankruptcy Statistics, 132
Nature of Insolvency, 134
5.5 Types of Insolvency, 134
5.6 Equity versus Bankruptcy Meanings of Insolvency, 135
5.7 Determination of Assets and Liabilities, 135
5.8 Valuation of Assets, 136
5.9 Insolvency and the Bankruptcy Code, 136
5.10 Should There Be a Threshold Test?, 137
5.11 Alternatives Available to a Financially Troubled Business, 139
Assignment for the Benefit of Creditors (State Court), 140
5.12 Introduction, 140
5.13 Duties, Functions, and Procedures of Assignee, 140
5.14 Discharge of Debts, 141
5.15 Advantages, 142
5.16 Disadvantages, 142
Provisions Common to all Proceedings, 143
5.17 Introduction, 143
5.18 Bankruptcy Courts, 144
5.19 U.S. Trustee, 146
5.20 Sovereign Immunity, 149
5.21 Commencement of Cases, 154
5.22 Filing and Quarterly Fees, 156
5.23 Partnership, 157
5.24 Meeting of Creditors, 158
5.25 Meeting of Equity Security Holders, 159
5.26 Adequate Protection, 159
5.27 Automatic Stay, 164
5.28 Use of the Estate’s Property, 174
5.29 Executory Contracts and Leases, 175
5.30 Utility Service, 193
5.31 Allowance of Claims or Interests, 196
5.32 Expense of Administration, 202
5.33 Priorities, 205
5.34 Exemptions, 207
5.35 Discharge of Debts, 211
5.36 Property of the Estate, 213
5.37 Avoiding Power of Trustee, 220
5.38 Reclamation and 503(b)(9) Claim, 222
5.39 Preferences, 226
5.40 Fraudulent Transfers, 249
5.41 Postpetition Transfers, 258
5.42 Postpetition Effect of Security Interest, 259
5.43 Setoffs, 260
Chapter 7 Liquidation, 263
5.44 Filing the Petition, 263
5.45 Trustee, 264
5.46 Creditors’ Committee, 266
5.47 Partnerships, 267
5.48 Treatment of Tax Liens, 269
5.49 Liquidation of Assets, 269
5.50 Discharge, 271
5.51 Discharge of Environmental Claims, 278
SIPC Liquidation, 278
5.52 Introduction, 278
5.53 Determination of Need of Protection, 279
5.54 Appointment of Trustee, 280
5.55 Court Jurisdiction, 280
5.56 Powers and Duties of Trustee, 283
5.57 Satisfaction of Claims, 284
5.58 Prohibited Acts, 286
5.59 Role of Securities and Exchange Commission, 287
5.60 Compensation in an SIPA Action, 288
6 Rehabilitation Proceedings Under the Bankruptcy Code, 289
6.1 Introduction, 289
6.2 Purpose of Chapter 11, 289
Operating Under Chapter 11, 290
6.3 Role of the Court and U.S. Trustee, 290
6.4 KERPs, 292
6.5 Consolidation of Chapter 11 Petitions, 296
6.6 Creditors’ and Equity Holders’ Committees, 302
6.7 Appointment or Election of Trustee, 309
6.8 Appointment of Examiner, 314
6.9 Operation of the Business, 318
6.10 Automatic Stay, 319
6.11 Impact of Timbers, 319
6.12 Use of Collateral, 320
6.13 Use of Cash Collateral, 320
6.14 Obtaining Credit, 322
6.15 Claims and Interests, 330
6.16 Special Provisions for Partially Secured Creditors, 340
Developing the Plan, 342
6.17 Negotiating a Chapter 11 Plan, 343
6.18 Exclusivity Period, 344
6.21 Secured Claim Classification, 356
6.22 Interest Classification, 357
6.23 Content of the Plan, 357
6.24 Permissible Provisions, 359
6.25 Impairment of Claims, 361
6.26 Disclosure Statement, 364
6.27 Modification of the Plan, 373
Confirmation of the Plan, 375
6.28 Acceptance of the Plan, 375
6.29 Confirmation Hearing, 375
6.30 Confirmation Requirements, 376
6.31 Best Interest of Creditors, 378
6.32 Priority Treatment, 379
6.33 Feasibility, 381
6.34 Cramdown, 385
6.35 Chapter 11 Cases Filed by Individuals, 394
Postconfirmation, 397
6.36 Impact, 397
6.37 Distribution, 400
6.38 Discharge of Debts, 401
6.39 Postconfirmation Recovery, 401
6.40 Securities Law Exemption, 402
6.41 Final Decree, 404
6.42 Conversion to Chapter 7 or Dismissal, 405
6.43 Advantages and Disadvantages of Chapter 11, 407
Chapter 12: Adjustment of Debts of a Family Farmer with Regular Annual Income, 407
6.44 Purpose, 407
6.45 Requirements for Use, 408
6.46 Operation of Farm, 408
6.47 Chapter 12 Plan, 409
Chapter 13: Adjustment of Debts of an Individual with Regular Income, 411
6.48 Nature, 411
6.49 Filing of Petition, 411
6.50 Operation of Business, 413
6.51 The Plan, 413
6.52 Discharge of Debts, 417
6.53 Use of Chapter 13 by Business, 418
6.54 Chapter 15: Ancillary and Other Cross Border Cases, 419
7 Retention of the Financial Advisor and Fees, 427
7.1 Introduction, 427
Retention of the Financial Advisor, 428
7.2 The Accountant or Financial Advisor’s Role in the Proceedings, 428
7.3 Obtaining the Engagement, 428
7.4 Retention Procedure, 429
7.5 Creditors’ Committee, 432
7.6 Source of Payment, 433
7.7 Affidavit of Proposed Financial Advisor, 434
7.8 Survey of Work to Be Performed, 440
7.9 Application for Retention, 441
7.10 Retention Order, 444
7.11 Retention on a Retainer Basis, 444
7.12 Deviations from Retention Order, 445
7.13 Accountants as Consultants or Financial Advisors, 445
7.14 Prepetition Retention, 446
7.15 Retention Procedure—Informal, 446
7.16 Accountants as Quasi-Officers of the Court, 447
Determination of Financial Advisor’s Fees, 447
7.17 Introduction, 447
7.18 SEC May Object to Fees, 448
7.19 Compensation Reviewed by U.S. Trustee, 449
7.20 Compensation Must Be Approved by the Court, 449
7.21 Factors to Consider When Estimating Fees, 453
7.22 Compensation Based on Comparable Services, 458
7.23 Prepetition Fees, 460
Time Records, 461
7.24 Requirements, 461
Petition for Fee Allowance, 462
7.25 Court Discretion in Ruling on Fees, 462
7.26 Procedure for Filing the Petition, 465
7.27 Payment for Services Rendered, 466
8 Accounting and Financial Services for Debtors-in-Possession or Trustee, 469
Nature of Accounting Services, 469
8.1 Introduction, 469
8.2 Parties Retaining Accountants and Financial Advisors, 469
8.3 Summary of Services, 471
Prefiling Stage of Chapter Proceedings, 472
8.4 Importance of Early Meetings, 472
8.5 Advice on Selection of Counsel, 473
8.6 Conference with Attorney, 473
8.7 Determine Alternatives, 474
8.8 Prebankruptcy Planning, 475
Accounting/Financial Reporting Requirements, 481
8.9 Introduction, 481
8.10 Affidavits in Support of Petition, 483
8.11 Supporting Schedules, 484
8.12 Statement of Financial Affairs, 487
8.13 Monthly Reporting, 488
8.14 U.S. Trustee’s Requirements, 489
8.15 Operating Statements, 490
8.16 SEC Reporting in Chapter 11, 492
8.17 Bankruptcy Claims Management Process, 495
Formulation of a Plan of Reorganization, 499
8.18 Introduction, 499
8.19 Liquidation Value of Assets, 500
8.20 Projection of Future Operations, 501
8.21 Reorganization Value, 501
8.22 Pro Forma Balance Sheet, 502
8.23 Formulating an Amended Plan, 503
8.24 Disclosure Statement, 503
Accountant and Financial Advisor as Examiner, 504
8.25 Nature of Service, 504
Additional or Other Accounting Services, 505
8.26 Introduction, 505
8.27 Normal Accounting Services, 505
8.28 Special Investigation, 505
8.29 Accounting Services and the Granting of New Credit, 507
Professional Conduct of Accountants and Financial Advisors, 508
8.30 Introduction, 508
8.31 Personal Liability: Preparation of Financial Statements, 508
8.32 Professional Conduct of Debtor’s Accountant— Toward Client, 509
8.33 Professional Conduct of Debtor’s Accountant— Toward Creditors’ Accountant/Advisors, 510
8.34 Direct Liability to Third Parties, 511
8.35 Other Professional Ethical Factors, 511
9 Other Financial Advisory Services for Debtors-in-Possession or Trustee, 513
9.1 Introduction, 513
Management Advisory Services, 513
9.2 Introduction, 513
9.3 Long-Range Business Plan, 514
9.4 Financial Projections, 516
Interim Management Services, 516
9.5 Introduction, 516
9.6 Retention, 517
9.7 Billing, 517
Balloting and Noticing Agent Services, 517
9.8 Noticing Overview, 517
9.9 Solicitation Overview, 518
9.10 Pre-Balloting Services, 519
9.11 Plan Classes, 519
9.12 Solicitation Process, 520
9.13 Plan Information and Ballots, 520
Chapter 7 and Chapter 11 Liquidations, 521
9.14 Introduction, 521
9.15 Items Requiring Immediate Attention, 521
9.16 Performance of Audits and Other Special Investigations, 522
9.17 SIPC Liquidation, 522
Postconfirmation Services, 523
9.18 Overview, 523
9.19 Litigation Trusts, 523
9.20 Tort Trusts, 523
10 Accounting and Financial Services for the Creditors’ Committee, 525
Nature of Creditors’ Committee, 525
10.1 Introduction, 525
10.2 Creditors’ Committees, 526
10.3 Directing Committee Activities, 534
10.4 Data, 535
10.5 Bargaining Process, 535
10.6 Role of Creditors’ Financial Advisor in the Bargaining Process, 536
10.7 Form of Consideration, 537
Monitoring Debtor’s Activities, 537
10.8 Introduction, 537
10.9 Areas Requiring Immediate Attention, 537
10.10 Importance of Speed, 538
10.11 Establishment of Proper Controls, 539
10.12 Investigation of Causes of Failure and Development of Controls to Limit Further Impairment of Assets, 540
10.13 Review of Receipts and Disbursements Control, 540
10.14 Review of Debtor’s Accounting System, 541
10.15 “Insider” Problem, 542
10.16 Review of Weekly/Monthly Reporting, 544
Special Investigations and Reviews, 545
10.17 Investigation of Debtor’s Books and Records, 545
10.18 Review of Debtor’s Transactions, 546
10.19 Evaluation of Debtor’s Projections, 546
10.20 Review of Plan of Reorganization and Disclosure Statement, 547
Other Accounting Services, 550
10.21 Introduction, 550
10.22 Secured Creditor, 550
10.23 Major Stockholder or Equity Committee, 550
10.24 Responsibilities of Creditors’ Financial Advisor, 551
11 Valuation of a Business in Bankruptcy Proceedings, 553
Importance of Valuation, 553
11.1 Introduction, 553
11.2 Adequate Protection under Section 361, 554
11.3 Claims Determination, 558
11.4 Recovery Action, 561
11.5 Chapter 13 Secured Claims, 567
11.6 Determining Best Interest of Creditors and Stockholders under Chapter 11, 568
11.7 Determining Whether a Plan Is Fair and Equitable to a Dissenting Class in Chapter 11, 569
11.8 Determining Feasibility, 573
11.9 Codification of Value, 573
Liquidation Values, 575
11.10 Introduction, 575
11.11 Approaches, 577
Going-Concern (Reorganization) Valuation, 578
11.12 Introduction, 578
11.13 Cost of Capital, 579
11.14 Appraisal Value or Replacement Cost, 588
11.15 Market Value of Securities, 588
11.16 Income Approach (Discounted Cash Flows), 589
11.17 Market Approach, 596
11.18 Asset-Based (Cost) Approach, 607
11.19 Discounts and Premiums, 612
11.20 Synthesizing Results, 618
11.21 Determining Liabilities, 622
PART THREE INVESTIGATION AND REPORTS
12 Special Areas of Inquiry, 627
Nature of Investigation, 627
12.1 Introduction, 627
12.2 Objectives, 628
12.3 Balance Sheet Emphasis, 629
12.4 Modifications of Investigation, 629
Introduction to the Special Areas of Inquiry, 631
12.5 Irregularities, 631
12.6 Fraud, 633
12.7 Proof of Fraud, 634
12.8 Auditor’s Responsibility for the Detection of Irregularities, 634
12.9 Methods of Discovering Irregularities and Fraud, 640
Availability of Books and Records, 641
12.10 Locating and Obtaining Possession of the Records, 641
12.11 Scheduling the Books; Procedure Followed for Missing Records, 642
Fraudulent Transfers, 642
12.12 Transfer of Assets without Fair Consideration, 642
12.13 Sales of Assets Below Market Values, 643
12.14 Transfer of Assets to Insiders, Officers, Employees, Relatives, and Others, 643
Concealment of Assets, 648
12.15 Merchandise, 648
12.16 Cash Surrender Value of Officers’ Life Insurance Policies, 650
12.17 Deposits and Security, 651
12.18 Investments and Real Estate, 651
12.19 Machinery and Equipment, 652
False Entries and Statements, 652
12.20 Mutilation and Alteration of Records, 652
12.21 Concealment and Destruction of Records, 653
12.22 Forgery, 653
12.23 Issuance of False Statements, 653
Financing Irregularities, 657
12.24 Receivables, 657
12.25 Inventory, 659
Preferential Payments, 660
12.26 Introduction, 660
12.27 Recovery of Preferential Payments, 661
12.28 Search for Preferential Payments, 662
12.29 Inflated Claims, 663
Applicability of Generally Accepted Auditing Standards, 664
12.30 Auditing Standards, 664
12.31 Auditing Procedures, 665
12.32 Audit Program Guide, 666
13 Financial Reporting During Bankruptcy, 667
13.1 Introduction, 667
Form and Substance of Financial Statements, 668
13.2 Financial Data Required at the Date of Filing of Petition in Chapter 11, 668
13.3 Balance Sheet, 668
13.4 Rejected Leases, 677
13.5 Warranty Reserves and Similar Liabilities, 678
13.6 Pension Liability, 679
13.7 Pro Forma Statement of Financial Position, 681
13.8 Notes to Statements, 681
13.9 Statement of Operations, 682
13.10 Statement of Cash Flows, 687
13.11 Statement of Capital Deficiency, 689
13.12 Statement of Affairs, 689
13.13 Special-Purpose Statements, 693
Accounting for a Chapter 11 Filing, 694
13.14 Use of New Accounts, 694
13.15 Illustration of Entries, 696
13.16 Accrued Interest, 697
14 Reporting Results of the Plan, 699
14.1 Introduction, 699
Chapter 11, 699
14.2 Requirements for Fresh-Start Reporting, 699
14.3 Allocation of Reorganization Value, 701
14.4 Disclosures, 704
14.5 Recording the Adoption of Fresh-Start Reporting, 705
14.6 Deferred Taxes, 708
14.7 Disclosure Statement, 710
14.8 Subsequent Events and Preconfirmation Contingencies, 711
14.9 Reporting by Entities Not Qualifying for Fresh Start, 714
14.10 Comparison with Prior Periods, 714
Out-of-Court Workouts, 715
14.11 Introduction, 715
14.12 Debt Discharge under FASB Statement No. 15, 715
14.13 Reporting of Income from Debt Discharge When FASB Statement No. 15 Is Not Applicable, 723
14.14 Determining the Amount of Income from Debt Discharge When FASB Statement No. 15 Is Not Applicable, 724
Quasi-Reorganization, 724
14.15 Introduction, 724
14.16 Adjustment of Equity Section Only (“Mini Quasi”), 725
14.17 Adjustment of All Accounts, 726
14.18 Conditions Necessary for Quasi-Reorganization, 729
14.19 Quasi-Reorganization and the SEC, 729
15 Reporting on an Insolvent Company, 731
15.1 Introduction, 731
Litigation Services, 734
15.2 Application of Litigation Services to Bankruptcy, 734
15.3 Disclosure Requirements, 736
15.4 Operating Reports, 736
15.5 Investigative Services, 737
15.6 Financial Projections, 738
Accountant’s Report: Nonlitigation Services, 739
15.7 Introduction, 739
15.8 Limitations on Scope, 740
15.9 Unique Disclosures in Report, 741
15.10 Full Disclosure, 742
15.11 Accountant’s Responsibility for Disclosure, 743
Going-Concern Concept, 743
15.12 Introduction, 743
15.13 Going-Concern Concept Defined, 744
15.14 Absence of Evidence to the Contrary, 745
15.15 Auditor’s Responsibility for Evaluation, 746
15.16 Audit Procedures, 746
15.17 Consideration of Management’s Plans, 747
Types of Opinions, 748
15.18 Unqualified Opinion, 748
15.19 Qualified Opinion, 749
15.20 Disclaimer of Opinion, 750
15.21 Adverse Opinion, 750
15.22 Reports Relating to the Results of Applying Agreed-On Procedures, 751
Unaudited Financial Statements, 753
15.23 Introduction, 753
15.24 Public Entity Report, 753
15.25 Nonpublic Entity Reports, 756
Reporting on a Liquidation of the Debtor, 762
15.26 Introduction, 762
15.27 Single-Year Report, 763
15.28 Comparative Financial Statements, 764
15.29 Solvency Letters, 764
15.30 Reports on Prospective Financial Statements, 765
15.31 Liquidation Analysis, 765
16 Tax Awareness, 767
16.1 Introduction, 767
Notification of Proceedings and Filing of Returns, 767
16.2 Notice to Governmental Agencies, 767
16.3 Responsibility for Filing Income Tax Returns: Corporations, 768
16.4 Responsibility for Filing Income Tax Returns and Other Information Required by the Bankruptcy Court: Individual and Partnership, 769
Special Rules for Individuals, 774
16.5 Introduction, 774
16.6 Income and Deductions, 774
16.7 Transfers between Debtor and Estate, 775
16.8 Attribute Carryover to Estate, 778
16.9 Attribute Carryover to Debtor, 778
16.10 Carryback of Net Operating Losses and Other Credits Incurred Subsequent to Commencement of Case, 779
16.11 Administrative Expenses, 779
16.12 Change in Accounting Period, 782
Minimization of Tax and Related Payments, 782
16.13 Estimated Taxes, 782
16.14 Prior Year Taxes, 782
16.15 Pension Funding Requirements, 782
Treatment of Income During Bankruptcy Period, 782
16.16 Income Required to Be Reported, 782
16.17 Deductions Allowed, 783
16.18 Discharge of Debts, 784
16.19 Debt Discharge by Farmers, 788
16.20 Cancellation of Real Property Business Indebtedness, 789
16.21 Basis Adjustment, 790
16.22 Debt Discharge by Partnerships, 793
16.23 Debt Discharge by S Corporations, 793
16.24 Exchange of Stock for Debt, 793
16.25 Purchase-Money Debt Reduction, 794
16.26 Tax Planning, 794
Corporate Reorganizations, 794
16.27 Introduction, 794
16.28 Tax-Free G Reorganization, 795
16.29 Personal Holding Company, 797
Availability of New Operating Losses, 797
16.30 Introduction, 797
16.31 Section 382 Limitation, 798
16.32 Special Rules for Corporations in Bankruptcy, 799
16.33 Other Provisions, 800
Effects on Earnings and Profits, 801
16.34 Introduction, 801
16.35 Account Adjustment, 801
16.36 Earnings and Profits Carryover, 801
Administrative Aspects of Taxes, 802
16.37 Tax Priorities, 802
16.38 Tax Penalty, 809
16.39 Interest, 810
16.40 Erroneous Refunds or Credits, 810
16.41 Chapter 11 Reorganization, 810
16.42 Chapters 12 and 13 Adjustments, 811
16.43 Tax Discharge, 811
16.44 Tax Preferences, 813
16.45 Tax Procedures, 813
16.46 State and Local Tax Provisions, 814
Appendix: Statement of Position 815
Statutes Citations 849
Case Index 855
Name Index 865
Subject Index 867
