Structuring Venture Capital, Private Equity, and Entrepreneurial Transactions: 2003

by Levin, Jack S.

• ISBN13: 9780735538450
• ISBN10: 073553845X
• Format: Paperback
• Copyright: 2003-03-01
• Publisher: Wolters Kluwer

Summary

Now, you can minimize your clients' tax liability and avoid legal pitfalls, As well as maximize returns on successful transactions and be prepared for all of the potential benefits, with Structuring Venture Capital Private Equity and Entrepreneurial Transactions . Here at last is one-step-at-a-time, start-to-finish structural guidance For The following common business transactions: Venture capital financing New business start-ups Brains-and-money deals Growth-equity investments Leveraged and management buyouts Industry consolidations Troubled company workouts and reorganizations Going public Selling a business Forming a private equity fund Guided by Levin's dynamic, transaction-by-transaction approach, you'll make the tax, legal, and economic structuring consequences of every deal benefit your client every time. In this extraordinary hands-on resource by the most sought-after authority in the field, you'll see exactly how to: Distribute the tax burden in your client's favor Maximize returns on successful transactions Control future rights to exit a profitable investment...and turn every transaction into a winning venture!

Table of Contents

About the Author and Special Editors	v
Acknowledgments	ix
Introduction
Nature and Use of This Book	1	(1)
General Description of Venture Capital and Private Equity Investing	2	(1)
Distinguishing Venture Capital/Private Equity Investing from Other Types of Investing	3	(3)
High Cost of Venture Capital/Private Equity Money	6	(1)
Typical Venture Capital/Private Equity Transactions	7	(6)
Traditional Start-Up Transaction	7	(1)
Growth-Equity Transaction	7	(2)
Troubled-Company Turn-Around Investment	9	(1)
Leveraged or Management Buyout	9	(2)
Industry Consolidation	11	(1)
Exit Strategies	11	(1)
Formation of Venture Capital, Private Equity, or Buyout Fund	12	(1)
History of Venture Capital/Private Equity Investing	13	(2)
Ancient History	13	(1)
Industrial Revolution and Merchant Bankers	13	(1)
U.S. in the 1940s and Thereafter	14	(1)
Frequently Used Definitions	15
Structuring Start-Up Transaction
E's Proposed Structure---All Common Stock	5	(4)
Code §83(a) Adverse Tax Effect on E	5	(1)
E's Code §83(a) OI on Bargain Purchase of Newco Stock	5	(1)
Several Approaches for Avoiding or Minimizing Code §83(a) OI	6	(1)
Code §351	6	(1)
Temporal differentiation	7	(1)
Substantive differentiation	8	(1)
Split of Proceeds If Newco Not Successful	8	(1)
Split of Proceeds If Newco Successful	8	(1)
Interest Deduction	9	(1)
VC's Internal Rate of Return	9	(1)
E's Good-Faith Investment	9	(1)
E's Conditional Right to Retain Newco Stock	9	(1)
VC's Proposed Structure---Non-Convertible Debentures and Preferred in Addition to Common	9	(13)
VC Senior Claim	10	(1)
E's Purchase of Common Stock	10	(1)
No Significant Code §83(a) OI	11	(1)
Modest Code §83(a) OI Risk	11	(1)
Recourse Note	12	(1)
Interest-Bearing Note	12	(1)
E's Interest Deduction	12	(1)
Vesting	13	(1)
Option to Repurchase from E at Cost	13	(1)
Time Vesting	13	(2)
Performance Vesting	15	(1)
No Code §83(b) Election	15	(2)
Code §83(b) Election	17	(1)
Newco Deduction	17	(2)
E's LTCG on Sale	19	(1)
Vesting Subsequently Imposed On Outstanding Stock	19	(2)
Other Issues	21	(1)
Post-Vesting Buy-Back from E	21	(1)
Accounting Charge	21	(1)
Granting Stock Option to E	22	(1)
Newco Sale of Stock to VC	22	(1)
Several Alternative Capital Structures	22	(2)
VC Convertible Debenture or Convertible Preferred	22	(1)
VC Participating Double Dip Preferred Stock	23	(1)
Terms and Tax Aspects of VC's Debenture and Preferred Stock	24	(1)
Structuring Control of Newco's Board	24	(2)
No Relationship Between Equity Split and Board Seats	24	(1)
E's Proposal	24	(1)
VC's Proposal	25	(1)
Neutral-Director Compromise	25	(1)
Veto-Power-Plus-Shifting-Director Compromise	25	(1)
Protecting Newco's Directors from Personal Liability	25	(1)
Control Over Subsequent Private Offering, IPO, or Sale of Newco	26	(1)
SEC Compliance	27	(13)
Obligation to Register Securities with SEC	27	(1)
Exemptions from SEC Registration	27	(1)
SEC Reg. D	27	(1)
Rule 504	27	(2)
Rule 505	29	(2)
Rule 506	31	(1)
Integration	31	(1)
Look Through	32	(2)
Reg. D Notification	34	(1)
SEC Rule 701	34	(1)
SEC Rule 1001	35	(1)
SEC Reg. A	36	(1)
Restrictions on Resale of Newco Securities	37	(1)
Restricted Securities	37	(1)
Unrestricted Securities	37	(1)
Contractual Registration Rights	38	(1)
Newco Resistance	38	(1)
Piggy-Back Offering	38	(1)
Underwritten Offering	39	(1)
Short-Form S-2 or S-3	39	(1)
Reg. A	40	(1)
Rule 144	40	(1)
Compliance with State Securities Laws	40	(1)
Nature of VC	41	(12)
VC as SBIC	41	(4)
VC as BHC Subsidiary	45	(1)
BHCA	45	(1)
Reg. Y and the 5/25 rules	45	(1)
VC as SBIC	46	(1)
Reg. K	46	(1)
Merchant Banking Activity	47	(3)
Federal Reserve Act §23A	50	(2)
VC as Insurance Company	52	(1)
Special LTCG Advantages for Individuals	53	(1)
Key Issues and References	53
Structuring Newco as Flow-Through Entity
Newco as S Corporation	3	(10)
No Entity-Level Tax	3	(1)
S Compared to C and Other Entities	3	(1)
S Compared to C	3	(3)
S Compared to Partnership or LLC	6	(1)
State Taxation	7	(1)
Loss Pass-Through	7	(1)
Limited Liability	7	(1)
Piercing the Corporate Veil	8	(1)
Environmental Cleanup	8	(1)
Pension Plan and Other ERISA Liabilities	8	(1)
Shareholder Participation in Negligent or Wrongful Act	9	(1)
Arbitrary Tax Limitations on Use of S	9	(1)
One Class of Stock	9	(1)
75-Shareholder Limitation	9	(1)
Prohibition on Entity and Foreign Shareholders	10	(2)
Corporate Subsidiaries	12	(1)
Key Issues and References	12	(1)
Newco as Partnership	13	(18)
No Entity-Level Tax	13	(1)
Delivering SUB to Buyer	14	(2)
No Arbitrary Tax Limitations on Partnership Qualification	16	(1)
Flexible Sharing and No Recognition of Gain on Property Distributions	16	(1)
Loss Pass-Through	17	(1)
Difficulties in Achieving GP Limited Liability	17	(2)
Difficulties in Achieving LP Limited Liability	19	(2)
Achieving Flow-Through Tax Status	21	(1)
Check-The-Box Classification Rules	21	(1)
Determining Who Is a Partner	22	(1)
Publicly Traded Partnership Taxed as Corporation	23	(1)
IPO	24	(1)
Incorporation	24	(1)
UBTI	25	(1)
Foreign Person	25	(1)
Use of Holding Corporation	25	(1)
Taxation of Service Provider on Receipt of Partnership Interest	25	(4)
Key Issues and References	29	(2)
NEWCO as LLC	31	(4)
LLC General Characteristics	31	(1)
No Entity-Level Tax and Other Tax Attributes	32	(1)
Limited Liability	33	(1)
Achieving Flow-Through Tax Status	34	(1)
Check-The-Box Classification Rules	34	(1)
Determining Who Is a Member	34	(1)
Non-Tax Disadvantages	35	(1)
Key Issues and References	35	(1)
Tax Limitations on Newco's Deductible Expenses	35
Capitalization of Pre-Opening Start-Up Expenses	35	(1)
Exceptions	36	(1)
Key Issues and References	36
Structuring Growth-Equity Investment in Existing Company
Proposed Growth-Equity Transaction	4	(2)
Oldco's Characteristics	4	(1)
VC Proposed Investment	5	(1)
Rearranging Oldco's Equity Through Redemption	6	(7)
Principal Tax Characteristics	7	(2)
Principal Non-Tax Issues	9	(1)
Redemption Example	10	(1)
Key Redemption Issues and References	11	(2)
Issuing Additional Oldco Common Shares (or Options) to Executives	13	(1)
Rearranging Oldco's Equity Through Tax-Free Recapitalization	13	(8)
Principal Tax Characteristics	13	(6)
Principal Non-Tax Issues	19	(1)
Recapitalization Example	20	(1)
Key Recapitalization Issues and References	20	(1)
Rearranging Oldco's Equity Through Preferred Stock Dividend Plus Formation of Newco to Hold All of Oldco's Common (And Part of Oldco's Preferred) Stock	21	(7)
Principal Tax Characteristics of Oldco's Pro Rata Preferred Stock Dividend	22	(1)
Example of Preferred Stock Dividend Plus Interposition of Newco to Own All of Oldco's Common (and Part of Oldco's Preferred) Stock	23	(1)
Tax Effects of Newco's Interposition	24	(1)
Issuing Additional Newco Common Shares (or Options) to Executives	25	(1)
Key Issues and References on Preferred Stock Dividend Plus Interposition of Newco and Selective Issuance of New Common Stock or Options	26	(2)
Passive Shareholder Incentive to Reduce Common Ownership	28	(1)
IRS Anti-Estate-Freeze Rules	28	(9)
Code §2701 Imputed Gift	28	(1)
Avoiding Code §2701	29	(1)
No-Family-Relationship Exception	29	(1)
No-Applicable-Retained-Interest Exception	29	(4)
Same-Class Exception	33	(1)
Proportionality Exception	33	(1)
Market-Quoted Securities	33	(1)
Calculating Code §2701 Gift	33	(1)
Four-Step ``Subtraction Method''	34	(2)
Common-Stock-10%-Minimum-Value Rule	36	(1)
Taxation of and Accounting for Options	37	(34)
NQO Tax Ramifications	37	(1)
Income Tax Ramifications	37	(2)
Transfer Tax on Gift	39	(1)
Vested NQO	39	(2)
Unvested NQO	41	(2)
ISO Tax Ramifications	43	(1)
Accounting for Options, Stock Sales, and Stock Grants	44	(1)
APB 25 Rules for Non-variable Stock-Based Compensation	45	(2)
APB 25 Rules for Variable Stock-Based Compensation	47	(1)
Elective FASB 123 Rules for Non-variable and Variable Stock-Based Compensation	48	(4)
APB 25 Rules for Vesting and TARSAP	52	(1)
APB 25 Rules for Paying Stock Purchase Price or Option Exercise Price by Note	53	(2)
Stock purchase using non-recourse note	55	(1)
Option exercise using non-recourse note	56	(2)
Stock purchase using recourse note	58	(1)
Option exercise by recourse note	58	(1)
Stock purchase or option exercise with recourse note followed by conversion to non-recourse note	59	(1)
APB 25 Rules for Tax-Offset or Other Cash Bonus	60	(1)
APB 25 Rules for Option Repricing, Rescissions and Other Modifications	61	(1)
APB 25 repricing rule	61	(3)
APB 25 extension or renewal rule	64	(1)
APB 25 change in number of shares rule	64	(1)
APB 25 equity restructuring rule	65	(1)
APB 25 rules for other modifications	65	(1)
APB 25 rules for stock option rescission	65	(1)
FASB 123 repricing and other modification rule	66	(1)
APB 25 Rules for Accelerated Vesting	66	(1)
Timing of Accounting Charges	67	(1)
Illustration---NQO Tax and Accounting Aspects	67	(1)
Tax Aspects	68	(1)
APB 25 GAAP Aspects	68	(1)
FASB 123 GAAP Aspects	69	(1)
Stock Sale	69	(1)
Key Issues and References on Options, Stock Sales, and Stock Grants	70	(1)
Negotiating Posture as Compared to Start-Up Transaction	71	(2)
Terms of VC's Debentures and Preferred Stock	73	(1)
Complying with Federal and State Securities Laws	74	(1)
Nature of VC	74	(1)
Special LTCG Tax Advantages for Individuals	74
Structuring Buyout
Buyout of Bigco Subsidiary or Division	7	(54)
$50 Million Purchase Price and Financing Therefor	7	(2)
Three Separate Transactions	9	(1)
Acquisition	9	(1)
Debt Financing	9	(1)
Equity Financing	9	(1)
Key Issues and References on Buyouts in General	10	(1)
Key Acquisition Issues	11	(1)
Purchase Price and Related Issues	11	(1)
Purchase Price	11	(1)
Reps & Warranties	12	(2)
Closing Conditions	14	(1)
Transition Services	15	(1)
Seller Paper	15	(1)
Transferring Target Assets and Contracts	15	(1)
Hard to Transfer Assets and Contracts	15	(1)
Sales Tax and Real Estate Transfer Taxes	16	(1)
Real Estate Title Insurance	16	(1)
Union Contracts	17	(1)
Hart-Scott-Rodino Antitrust Reporting Act	17	(1)
Filing and Waiting Period	17	(1)
Size of Transaction	18	(1)
Size of Person	18	(1)
Exemption	19	(1)
No Antitrust Exemption	19	(1)
References	19	(1)
Protecting Newco from Target Liabilities	19	(1)
Stock Acquisition	19	(1)
Asset Acquisition	20	(1)
Bulk sales act	20	(1)
De facto merger and successor liability	21	(1)
Some Special Target Liabilities	21	(1)
Bigco's Unpaid Consolidated Federal Income Taxes	21	(1)
Target's and Bigco's Pension Plan Liabilities	22	(1)
Withdrawal Liability for Underfunded Multiemployer Union Pension Plan	23	(1)
Effect of Target's Retiree Medical Benefits on Newco's Financial Statements	24	(1)
Bigco Public Announcement	24	(1)
Regulated Industry	24	(1)
Key Debt Financing Issues	24	(1)
Negotiating Bank Loan	24	(1)
Negotiating Subordinated Debentures (or Seller Paper)	25	(2)
Negotiating Relative Rights of Various Financing Parties	27	(1)
Priorities, Express Subordination, and Structural Subordination	27	(1)
Priorities	27	(1)
No Newco shareholder liability	27	(1)
Express subordination and cut-offs	27	(1)
Structural subordination	27	(1)
Alternative acquisition structures	28	(1)
Purchasing Target's Stock	28	(1)
Purchasing Target's Assets	28	(1)
Purchasing Target's Stock Plus Target Liquidation	29	(1)
Reverse Subsidiary Cash Merger	30	(1)
Reverse Two-Party Cash Merger	31	(1)
Part Purchase Plus Part Redemption of Target's Stock	31	(1)
Fraudulent Conveyance Risk	32	(2)
Other Issues	34	(1)
Upstream guarantees	34	(1)
Effect of tax law on choice of acquisition structure	35	(1)
Key Equity Financing Issues	35	(1)
VC's and Subordinated Debenture Buyers' Equity	35	(1)
Tax and SEC Issues in Evaluating Convertible vs. Warrants vs. Cheap Common	36	(1)
Purchasing Common Stock	36	(1)
Warrants---Tax Aspects	36	(1)
Convertible---Tax Aspects	37	(1)
Tax Allocation to Warrant or Common But Not Conversion Feature	37	(1)
SEC Rule 144 Holding Period	38	(1)
Recapitalization, Merger, or Other Tax-Free Reorganization	39	(1)
Anti-Dilution Provision	39	(1)
Liabilities Which Migrate Upstream Where One Person Owns Large Amount of Newco Stock	39	(1)
Pension Plan and Other ERISA Liabilities	39	(2)
Environmental Cleanup	41	(1)
Owner/operator liability	41	(1)
Veil-piercing	41	(1)
Direct ``operator'' liability	41	(1)
Meaning of control	42	(1)
Other Liabilities	42	(1)
Management's Equity	42	(1)
General Considerations	42	(1)
Sarbanes-Oxley Act §402 Executive Loan Prohibition	43	(4)
Board Control and Related Issues	47	(1)
SEC and State Securities Law Compliance	48	(1)
Nature of VC	48	(1)
Federal Income Tax Aspects of Buyout	48	(1)
Overview	48	(2)
Alternative Acquisition Structures	50	(1)
Summary	50	(1)
Purchasing Target's Stock With No Code §338 Election or §338(h)(10) Election	50	(1)
Purchasing Target's Assets	50	(1)
Purchasing Target's Stock With Code §338(h)(10) Election	51	(1)
Forward Cash Merger	51	(1)
Reverse Subsidiary Cash Merger	52	(1)
Reverse Two-Party Cash Merger	53	(1)
Taxation of Bigco's Gain	53	(1)
Newco's Tax Savings from Asset SUB	54	(2)
Allocating Asset SUB	56	(1)
Newco's Aggregate Basis	56	(1)
Residual Allocation	56	(1)
Key Issues and References on Tax Aspects of Bigco Subsidiary or Division Buyout	57	(1)
GAAP Purchase Accounting Rules	58	(1)
Currently Effective GAAP Rules	58	(3)
FASB Proposed Changes	61	(1)
Buyout of Private Company	61	(11)
Federal Income Tax Aspects	62	(1)
Target Is C Corporation	62	(2)
Target Is S Corporation	64	(1)
Target Is Partnership or LLC	65	(1)
§197 Amortization	65	(1)
Summary	66	(1)
Target Management Tax-Free Rollover	66	(1)
Shareholder Vote and Dissenters' Rights	67	(3)
Purchase Accounting	70	(1)
Golden Parachute Tax Rules	70	(1)
Special LTCG Tax Advantages for Individuals	70	(1)
Other Issues	70	(1)
Key Issues and References on Private Company Buyout	71	(1)
Buyout of Public Company	72	(13)
One-Step vs. Two-Step Buyout	73	(1)
Federal Income Tax Issues	73	(1)
Securities and Corporate Law Issues and Negotiating Strategies	74	(1)
Practical Scenario	74	(1)
Federal Securities Laws	75	(1)
Disclosing Negotiations with Target	75	(1)
Ownership Disclosure	76	(1)
Limits on Insider Trading	77	(1)
Tender Offer Rules	77	(2)
Federal Margin Regulations	79	(1)
Going Private Rules	80	(1)
Proxy Rules	81	(1)
State Corporate Laws	82	(1)
Target Board's Fiduciary Duty	82	(1)
Negotiations with Target	83	(1)
No-shop/fiduciary-out clause	83	(1)
Lockup	83	(1)
Break-up fee	83	(1)
Financing out	83	(1)
Neutral or supermajority voting requirement	83	(1)
Negotiations with Management	84	(1)
Other Takeover Issues	84	(1)
Key Issues and References on Management's Fiduciary Duties	84	(1)
Buyout Structured for Recap Accounting	85
Recap Accounting Overview	86	(1)
Recap Accounting Where Target's Old Shareholders Have Significant Continuing Ownership In Recapitalized Target	87	(1)
Use of Transitory MergerCo	88	(2)
Use of Newco to Acquire Target	90	(1)
Partnership or LLC Newco	90	(1)
Subsequent elimination of corporate Newco	90	(1)
Newco-Target merger	90	(1)
Corporate downstream ``C'' or ``D''	91	(1)
LLC downstream ``C'' or ``D''	91	(1)
Nature of Old Target Shareholder Retained Equity Interest	92	(1)
Old Target Shareholders Not Part of Collaborative Group with New Target Investors	92	(1)
Target Voting Common Stock	93	(1)
Target Stock Options	93	(1)
Newly Purchased Target Stock	94	(1)
Restrictions on Retained Equity Interest	94	(2)
Value of Retained Equity Interest	96	(1)
VC Ownership of Target Warrants or Convertibles	97	(1)
VC Ownership of Target Preferred Stock	97	(1)
Effect of Recap Accounting on Newco's Financial Statements	98	(1)
Uncertainty in Recap Accounting Rules	98	(1)
Effect of Post-Buyout Events on Recap Accounting	99	(1)
Structuring to Obtain Recap Accounting Where Target's Shareholders Are Numerous or Recalcitrant	100	(1)
Pro-Rata Recap with Forced Merger	100	(1)
Non-Pro-Rata Recap	100	(3)
Recap Accounting Where Target Is Partnership or an LLC	103	(1)
Tax Issues Involved in Recap Accounting	103	(1)
Taxation of Continuing Old Target Shareholders	103	(2)
Tax SUB for Target's Assets	105	(1)
Eliminating corporate Newco	105	(1)
Corporate downstream ``C'' or ``D''	105	(1)
LLC downstream ``C'' or ``D''	106	(1)
Target partnership or LLC	106	(1)
Taxation of VC	106	(1)
Recap Accounting Where Target Public Debt or Preferred Stock Remains Outstanding after Recap	107	(1)
Recap Accounting Where Target Has Significant New Independent Shareholder	108	(3)
Recap of a Bigco Division	111	(1)
Key Recap Accounting Issues and References	112
Terms and Tax Ramifications of Debt and Equity Securities
Types of Securities	2	(1)
Subordinated Debenture Sample Terms and Tax Ramifications	2	(17)
Term	2	(1)
Subordination	2	(1)
Typical Remedies	3	(1)
Interest Deferral	3	(1)
VC Taxed on Deferred Interest as OID	3	(1)
Imputed Interest	3	(1)
VC Phantom OID Income	4	(1)
Six Prerequisites for Newco's Interest Deduction	4	(1)
Subjective Debt/Equity Test	4	(1)
DER	5	(2)
Overlap	7	(1)
Reasonable Terms	7	(1)
Act Like Creditor	7	(1)
Code §279---Subordinated Debentures with Warrants or Conversion Privileges	8	(2)
Code §163(e)(5)---OID and PIK Debentures	10	(1)
Code §163(j) Test #1---Interest Payable to ``Related'' Lender Which Is TEO or FP (or Fund with TEO or FP Partners)	11	(3)
Code §163(j) Test #2---Interest Payable on Debt ``Guaranteed'' by ``Related'' Person Who Is TEO or FP (or Possibly by Fund with TEO or FP Partners)	14	(1)
Code §163(l)---Debt Payable in, or by Reference to Value of, Issuer Equity	15	(3)
References	18	(1)
Preferred Stock Sample Terms and Tax Ramifications	19	(6)
Mandatory Redemption	19	(1)
Dividends	19	(1)
Typical Remedies for Newco Failure to Pay Preferred Dividends or Redeem Preferred Timely	19	(1)
No Deduction for Dividends	19	(1)
Timing of Dividend Taxation and DRDs	20	(1)
Return of Basis	21	(1)
FV Below Face	21	(1)
Management Buyer Code §83 Issue	21	(1)
VC Preferred OID Issue	22	(1)
Preferred Stock Redemption Treated as Dividend	23	(1)
References	24	(1)
Subordinated Debt Vs. Preferred Stock	25
Structuring Consolidation of Fragmented Industry
Structure #1: Corporate Holding Company and Individual Corporate Subsidiaries	6	(8)
Factual Situation	6	(1)
Analysis of Structure #1	7	(1)
Consolidated Federal Income Tax Return	7	(2)
Offset of Income and Losses Within Consolidated Group	9	(1)
Tax-Free Transfer of Funds Within Consolidated Group	10	(1)
Limitation on Amount of NewSub Stock Issued to Management and / or Subordinated Lenders	11	(1)
Limited Liability Protection for Newco's Owners	11	(1)
Newco's Limited Liability Protection from NewSub Obligations	11	(1)
IPO or Tax-Free Merger of Newco	12	(1)
Sale of Newco	12	(1)
Sale of Portion of Newco	13	(1)
Structure #2: Partnership or LLC Holding Company and Individual Corporate Subsidiaries	14	(5)
Factual Situation	15	(1)
Analysis of Structure #2	15	(1)
No Consolidated Federal Income Tax Return	15	(1)
No Offset of Income from One NewSub Against Losses of Newco or Another NewSub	15	(1)
Difficulties in Making Tax-Free Transfers of Funds Between Various NewSubs	16	(1)
No Limitation on Amount of NewSub Stock Issued to Management and / or Subordinated Lenders	16	(1)
Limited Liability for Newco's Owners	16	(1)
Newco Limited Liability Protection from NewSub Obligations	17	(1)
IPO or Tax-Free Merger of Newco	17	(1)
Sale of Newco	18	(1)
Sale of Portion of Newco	18	(1)
Structure #3: Partnership or LLC Holding Company and Individual Partnership or LLC Subsidiaries	19	(5)
Factual Situation	19	(2)
Analysis of Structure #3	21	(1)
No Entity-Level Tax	21	(1)
Offset of Income and Losses	21	(1)
Tax-Free Transfer of Funds Between Businesses	21	(1)
No Limitation on Amount of NewSub Ownership Interest Issued to Management and / or Subordinated Lenders	21	(1)
Limited Liability Protection for Newco's Owners	22	(1)
Newco Limited Liability Protection from Obligations of NewSub	23	(1)
IPO or Tax-Free Merger of Newco	23	(1)
Sale of Newco	23	(1)
Sale of Portion of Newco	24	(1)
Structure #4: Single Corporate Structure	24	(3)
Factual Situation	24	(1)
Analysis of Structure #4	25	(1)
One Federal Income Tax Return	25	(1)
Offset of Income and Losses Within Single Income Tax Return	25	(1)
Tax-Free Transfer of Funds Between Businesses	25	(1)
No Ability to Issue Stock of Particular Business to Management and / or Subordinated Lenders	26	(1)
Limited Liability Protection for Newco's Owners	26	(1)
No Newco Limited Liability Protection from Obligations of Particular Business	26	(1)
IPO or Tax-Free Merger of Newco	26	(1)
Sale of Newco	26	(1)
Sale of Portion of Newco	27	(1)
Structure #5: Single Partnership or LLC Structure	27	(4)
Factual Situation	28	(1)
Analysis of Structure #5	28	(1)
No Entity-Level Tax	28	(1)
Offset of Income and Losses	28	(1)
Tax-Free Transfer of Funds Between Businesses	29	(1)
No Ability to Issue Ownership Interests in Particular Business to Management and / or Subordinated Lenders	29	(1)
Limited Liability Protection for Newco's Equity Owners	29	(1)
Protection from Obligations of a Particular Business	30	(1)
IPO or Tax-Free Merger of Newco	30	(1)
Sale of Newco	30	(1)
Sale of Portion of Newco	30	(1)
Structure #6: No Holding Company---Direct Ownership of Individual Corporations by Shareholders	31	(3)
Factual Situation	31	(1)
Analysis of Structure #6	32	(1)
No Consolidated Federal Income Tax Return	32	(1)
No Offset of Income from One NewSub Against Losses of Another NewSub	32	(1)
Difficulties in Making Tax-Free Transfers of Funds Between Various NewSubs	32	(1)
No Limitation on Amounts of NewSub Stock Issued to Management and / or Subordinated Lenders	32	(1)
Generally No Newco Entity-Level Liabilities	32	(1)
NewSub Limited Liability Protection from Obligations of Another NewSub	33	(1)
IPO or Tax-Free Merger of the Enterprise	33	(1)
Sale of the Enterprise	33	(1)
Sale of Portion of the Enterprise	33	(1)
Structure #7: No Holding Company---Direct Ownership of Individual Partnerships or LLCs by Owners	34	(1)
Factual Situation	34	(1)
Analysis of Structure #7	34	(1)
No Entity-Level Tax	34	(1)
Offset of Income and Losses	35	(1)
Tax-Free Transfer of Funds Between Businesses	35	(1)
No Limitation on Amount of NewSub Ownership Interests Issued to Management and / or Subordinated Lenders	35	(1)
Limited Liability Protection for Enterprise's Equity Owners	35	(1)
Newco Limited Liability Protection from Obligations of NewSub	35	(1)
IPO or Tax-Free Merger of Newco	35	(1)
Sale of Enterprise	35	(1)
Sale of Portion of the Enterprise	35	(1)
Other Key Issues	35	(1)
References	36
Structuring Turn-Around Investment in Overleveraged or Troubled Company
The Failed Buyout	4	(1)
Alternative Workout Transactions	5	(4)
Transaction #1---Partial Payments to Creditors in Cash, New Debt, and Common Stock Where Badco Has No Market-Traded Debt Securities	5	(1)
$8 Million New Equity	5	(1)
Stock Cancellations	6	(1)
Creditor Compromises	6	(1)
Badco's Post-Restructuring Stock Ownership and Balance Sheet	7	(1)
Transaction #2---Badco's Subordinated Debentures Are Market Traded	8	(1)
Fact Pattern Variations	8	(1)
Tax Rules Applicable to Debt Restructuring	9	(10)
Key Badco Tax Issues	9	(1)
Amount of Debt Cancellation	10	(1)
Valuing Consideration Issued by Badco in Restructuring	10	(1)
Meaning of Market Traded	11	(1)
Alternative Tax Treatments of Debt Cancellation	12	(1)
Cancellation of Debt Income	12	(1)
The AR-Instead-of-CODI Bankruptcy/Insolvency Exception	12	(1)
Insolvency Requirement for a Non-Bankruptcy Restructuring	13	(1)
Meaning of Insolvency	13	(1)
Order of AR	14	(1)
Timing of AR	14	(1)
Insufficient Attributes to Reduce	14	(1)
Equity Capital Infusion	14	(1)
Consolidated Group	15	(1)
Shareholder-Contribution Exception	15	(1)
New-Debt-Not-Materially-Different Exception	16	(1)
Related-Party Rules	17	(1)
Key Issues and References on Badco's CODI and AR	18	(1)
Tax Results from the Alternative Restructuring Transactions	19	(5)
Transaction #1---No Market-Traded Debt	19	(2)
Transaction #2---Market-Traded Debt	21	(3)
Badco as C Corporation Versus S Corporation, Partnership, or LLC	24	(1)
Application of Code §163(e)(5)	24	(1)
Applicable SEC and Other Disclosure Rules	24	(2)
Exemptions from 1933 Act Registration	24	(1)
Form S-4 Registration	25	(1)
State Securities Laws	26	(1)
Other SEC Implications	26	(1)
Key Issues and References on Securities Law Impediments to Restructuring	26	(1)
Binding Dissenting Creditors to Restructuring	26	(3)
Non-Bankruptcy Restructuring	26	(1)
Pre-Packaged Bankruptcy Plan	27	(1)
Procedure for Pre-Packaged Bankruptcy Plan	27	(1)
Restructuring Under State Compromise or Arrangement	28	(1)
Badco's Ability to Use Its Remaining NOLCF	29	(5)
NOL Reduction for DC	29	(1)
NOLCF	29	(1)
Code §382 Taint	29	(2)
Code §382 Elimination	31	(1)
Built-in Losses	31	(1)
Built-in Gains	32	(1)
Code §382 Special Elective Bankruptcy Rule	32	(1)
Code §269 Elimination	33	(1)
Standstill Agreement to Prevent Subsequent Changes in Badco Shareholders	33	(1)
Key Issues and References on Future Usage of Badco's Pre-Workout NOLs	33	(1)
Code §384 Limitation on Use of Badco's NOLCF Against New Target's Big	34
Exit Strategies: Structuring IPO or Sale of VC-Financed Portfolio Company
Initial Public Offering	5	(4)
Methods for Reselling Restricted Securities	5	(1)
1933 Act Registration Statement on Form S-1	6	(1)
Underwritten Offering	6	(1)
Primary vs. Secondary Sales	6	(1)
Stock Exchange Listing vs. Nasdaq National Market	7	(1)
Special Form for Small Business Issuer	7	(1)
Short-Form 1933 Act Registration Statement for Subsequent Offerings	7	(1)
Blue Sky Compliance	8	(1)
No Gun Jumping	8	(1)
Balanced Prospectus	8	(1)
Post-IPO Obligations	8	(1)
1933 Act Registered Public Offerings Subsequent to IPO	9	(2)
Short-Form Registrations	9	(1)
Form S-3	10	(1)
Form S-2	10	(1)
Demand and Piggy-Back Registrations	11	(1)
SEC Rule 144 Sales After IPO	11	(5)
Information	11	(1)
Volume Limitation	11	(1)
Manner of Sale	11	(1)
1-Year Holding Period	12	(1)
Commencement of Holding Period	12	(1)
Acquisition From a Person Other Than Portfolio Company or an Affiliate	12	(1)
Convertible Security	12	(1)
Warrant	13	(1)
Possible Delay for Unvested Securities	13	(1)
Incorporation of Partnership or LLC	14	(1)
SEC Notification	14	(1)
2-Year Holding Period for Unlimited Non-Affiliate Sales	15	(1)
Partnership Fund Distribution in Kind	15	(1)
Rule 701 Securities	15	(1)
Resales of Portfolio Company Unrestricted Securities by Portfolio Company Affiliate	16	(1)
Portfolio Company Affiliate	16	(1)
Portfolio Company Non-Affiliate	16	(1)
Sale of Portfolio Company to, or Merger of Portfolio Company with, Bigco for Bigco Stock, Notes, and/or Cash	16	(4)
Bigco Stock as Principal Consideration	16	(2)
Bigco Debt Instrument as Part of Consideration	18	(1)
Bigco Asset SUB	18	(1)
Representations, Warranties, and Indemnifications from Portfolio Company's Shareholders	19	(1)
Representations and Warranties	19	(1)
Survival	19	(1)
Deductible and/or Ceiling	19	(1)
Escrow or Other Security	20	(1)
Assumption of Liabilities	20	(1)
Special LTCG Tax Advantages for Individuals	20	(11)
Code §1202 LTCG Rate Reduction to 14% on ``Qualified Small Business Stock''	21	(6)
Code §1045 Tax-Free Rollover for ``Qualified Small Business Stock''	27	(2)
18% LTCG Tax Rate for Property Acquired After 12/31/00	29	(2)
Executive Compensation Issues Where Corporation Becomes Publicly Held---§1 Million Deduction Limit	31	(6)
Basic Deduction Limit	31	(1)
Exception #1: Privately-Held Corporation	32	(1)
Exception #2: Plan or Agreement in Place When Privately-Held Corporation Becomes Publicly Held	32	(1)
Exception #3: Executive Not a ``Covered Employee''	33	(1)
Exception #4: Performance-Based Compensation	34	(1)
Non-Discretionary, Pre-Established, Objective Performance Goal	34	(1)
Compensation Committee Comprised Solely of 2 or More Outside Directors	35	(1)
Shareholder Disclosure and Approval	36	(1)
Compensation Committee Certification	36	(1)
Exception #5: Compensation Not Paid for Services as an Employee	36	(1)
References	37
Structuring Formation of Private Equity Fund
Partnership (or LLC) Versus Corporate Form for PE Fund	2	(7)
Tax Advantages of Selecting Partnership (or LLC) Form for PE Fund	2	(5)
Tax Advantages of Selecting Corporate Form for PE Fund	7	(1)
Industry Standard Generally Partnership Form	8	(1)
Midstream Switch from Corporate Form to Partnership (or LLC) Form	8	(1)
Key Tax Issues and References	8	(1)
Profit and Loss Allocations Between GP and LPs	9	(1)
Profit Allocation	9	(1)
Loss Allocation	9	(1)
Passive Money Market Interest	10	(1)
Old Buyout Fund Separate Partnership Structure	10	(1)
Timing of Distributions to GP and LPs	10	(2)
Pro-LP Alternative---Full Payout	10	(1)
Pro-GP Alternative---Distribute Net Profits First	11	(1)
Middle Ground---FV Capital Account Test	11	(1)
Alternative Middle Ground---Distribute Contributed Capital on Realized Investments First	11	(1)
GP Tax Distributions	11	(1)
Management Fee to GP	12	(1)
Life of PE Fund and Related Issues	13	(1)
Vesting and Tax Aspects of VC Principals' Interests in Management Company	14	(5)
Department of Labor Plan Asset Regulations	19	(2)
Investment Company Act of 1940	21	(9)
Private Placement of PE Fund's Equity Interests	30	(1)
Investment Advisers Act of 1940	30	(5)
PE Fund as an SBIC	35
Appendix Statutes, Regulations, and Other Precedents
¶2000 Internal Revenue Code of 1986	3	(192)
§1(a), (h), and (i)(2)	5	(4)
§11(a) and (b)	9	(1)
§61	9	(1)
§83	10	(2)
§108 (omitting (c)(1)(B), (c)(2)-(5), (d)(8)-(10), (f), and (g))	12	(6)
§162(m)	18	(1)
§163 (omitting (b), (c), (d)(4)(E), (d)(6), (e)(2)(C), (e)(3), (e)(4), (e)(5)(F), (e)(6), (f), (g), (h)(2)(E), (h)(3)(D), (h)(4)(A)(ii), (h)(4)(B), (h)(4)(D), (h)(5), (k), and (m))	19	(11)
§195	30	(1)
§197 (omitting (f)(5))	31	(5)
§243(a)-(c) (omitting (b)(1)(B), (b)(2)(B), and (b)(3))	36	(1)
§246A (omitting (c)(3))	37	(2)
§269	39	(1)
§279 (omitting (c)(5) and (i))	40	(4)
§280G	44	(3)
§301 (omitting (e) and (f))	47	(1)
§302 (omitting (f))	48	(3)
§305 (omitting (e) and (f))	51	(1)
§306 (omitting (f))	52	(3)
§311	55	(1)
§312(a)	56	(1)
§316(a)	56	(1)
§317	56	(1)
§318(a)	57	(1)
§331 (omitting (c))	58	(1)
§332	59	(1)
§334	60	(1)
§336 (omitting (d)(1)(B), (d)(2), (d)(3), and (e))	60	(1)
§337 (omitting (b)(2) and (d))	61	(1)
§338 (omitting (e), (h)(3)(C), (h)(6)(B), (h)(7), (h)(12-14), and (h)(16))	61	(5)
§351 (omitting (c), (e)(2), and (h))	66	(3)
§354(a) (omitting (a)(3))	69	(1)
§356 (omitting (b) and (d)(2)(C))	70	(1)
§358 (omitting (b), (c), and (g))	71	(2)
§368 (omitting (a)(2)(H) and (a)(3))	73	(4)
§382 (omitting (l)(2) and (l)(5)(F))	77	(11)
§384 (omitting (e))	88	(2)
§385	90	(1)
§421 (omitting (c))	91	(1)
§422 (omitting (c)(3))	91	(3)
§424 (omitting (j))	94	(2)
§447(d)(2)(C)(i) and (e)	96	(1)
§453(a)-(d), (f), and (k)(2)	97	(2)
§453A (omitting (b)(3) and (4))	99	(2)
§453B (omitting (e))	101	(2)
§465(a)(1) and (2)	103	(1)
§469 (omitting (c)(3), (c)(5), (c)(7), (d), (f), (h)(3), (i), (j), (k), and (m))	103	(4)
§483 (omitting (d)(2)-(4), (e), and (g))	107	(1)
§511(a)(1)	108	(1)
§512(a)(1), (b)(1), (b)(4), (b)(5), (c)(1), and (e)	108	(2)
§513(a)	110	(1)
§514(a), (b)(1), (c)(1), (c)(2)(A), and (d)	111	(2)
§691(a)-(c) (omitting (b)(2), (c)(1)(C), (c)(3), and (c)(5))	113	(3)
§§701-761 (omitting §702(d), §704(f), §706(b)(4)(B), (b)(5), (d)(2)-(4), §721(c)-(d), §724, §735, and §761(f))	116	(21)
§871(a) and (b) (omitting (a)(1)(B), (a)(1)(D), and (a)(3))	137	(2)
§875	139	(1)
§881(a) (omitting (a)(4))	139	(1)
§882(a), (b), and (c) (omitting (c)(4))	140	(1)
§1001 (omitting (e))	141	(1)
§1014(a) and (c)	142	(1)
§1017 (omitting (b)(4), (c), and (d))	142	(2)
§1032(a)	144	(1)
§1045	144	(1)
§1059 (omitting (c)(3)(C), (d)(2), (e)(2), and (e)(3))	145	(3)
§1202	148	(7)
§§1272-1275 (omitting §1272(a)(2), (a)(6), (b), §1274(b)(3), (c)(3)(A), (c)(3)(B), (c)(3)(E), (e), §1274A, and §1275(a)(1)(B), (a)(3), (b), (c)(2)-(4))	155	(7)
§§1361-1378 (omitting §1362(e)(5) and (6), §1366(f)(1) and (g), §1371(d), §1373, and §1375(c))	162	(23)
§1501	185	(1)
§1504(a) and (b)	186	(1)
§4999	187	(1)
§7704	188	(2)
§7872 (omitting (c)(1)(F), (c)(2)(C), (f)(11), (f)(12), and (g))	190	(5)
¶2100 Treasury Regulations	195	(62)
Treas. Reg. §1.83-1-1.83-8 (omitting -6(a)(5) and -8(b))	195	(20)
Treas. Reg. §1.305-1(b)(1), (c), -5(a), (b), (d) (Examples 4, 5, 7, 8, 9, and 10), -7(a), (b), and (c)(1)-(2)	215	(9)
Treas. Reg. §1.338(h)(10)-1	224	(10)
Treas. Reg. §1.351-1 and -2 (omitting -1(a)(3)(ii) and -1(c)(6)(ii))	234	(4)
Treas. Reg. §1.1361-1(a), (b), (e), (g)(1)(i), (l) (omitting -1(b)(6) and -1(l)(7))	238	(12)
Treas. Reg. §1.1502-6	250	(1)
Treas. Reg. §301.7701-2 and -3 (``Check-the-box'' regulations)	250	(7)
¶2200 Revenue Procedures and Revenue Rulings	257	(20)
Rev. Proc. 93-27	257	(1)
Rev. Proc. 2001-43	258	(2)
Rev. Rul. 69-6	260	(2)
Rev. Rul. 73-427	262	(1)
Rev. Rul. 78-250	263	(1)
Rev. Rul. 79-273	264	(3)
Rev. Rul. 85-106	267	(3)
Rev. Rul. 90-95	270	(2)
Rev. Rul. 95-70	272	(2)
Rev. Rul. 98-21	274	(3)
¶2300 Federal Securities Laws	277	(56)
Securities Act of 1933	278	(1)
§2(a)(1), (4), (11), (12)	278	(1)
§3(a)(9), (10), (11)	279	(1)
§3(b)	279	(1)
§4(1), (2), (3), (4), (6)	279	(1)
§5	280	(1)
1933 Act Rules and Regulations	281	(1)
SEC Rule 144	281	(9)
SEC Rule 145	290	(2)
SEC Rule 147	292	(4)
SEC Reg. D	296	(13)
SEC Rule 701	309	(4)
Securities Exchange Act of 1934	313	(1)
§10 (omitting (a))	313	(1)
§13(k)(1)	313	(1)
1934 Act Rules and Regulations	314	(1)
SEC Reg. §240.10b-5	314	(1)
Investment Company Act of 1940	314	(1)
§2(a)(2), (3), (9), (13), (24), (42), (43), (46)-(48), (51)	314	(4)
§3(a), (b), (c)(1), (c)(3), (c)(7)(A), (c)(7)(E)	318	(3)
§6(b)	321	(1)
§48(a)	321	(1)
§55	322	(2)
Sec Reg. §270.2a51-1	324	(3)
SEC Reg. §270.2a51-2	327	(2)
SEC Reg. §270.2a51-3	329	(1)
SEC Reg. §270.3a-1	329	(1)
SEC Reg. §270.3a-2	330	(1)
SEC Reg. §270.3a-3	330	(1)
SEC Reg. §270.3c-1	331	(1)
SEC Reg. §270.3c-5	331	(1)
SEC Reg. §270.3c-6	332	(1)
Investment Advisers Act of 1940	333	(12)
§202(a)(11)	333	(1)
§202(a)(22)	334	(1)
§203(a)	334	(1)
§203(b)(3)	335	(1)
§203A	335	(1)
§205	336	(1)
§208(d)	337	(1)
§215	337	(1)
§222	338	(1)
SEC Reg. §275.203(b)(3)-1	339	(1)
SEC Reg. §275.203A-1	340	(1)
SEC Reg. §275.203A-2	341	(1)
SEC Reg. §275.205-3 (the ``heavy hitter rule'')	341	(4)
¶2400 Bankruptcy Code	345	(8)
§101(5), (32)	345	(1)
§501(a)	346	(1)
§544(b)(1)	346	(1)
§548 (omitting (a)(2), (d)(2)(B)-(D), (d)(3), and (d)(4))	346	(1)
§550	347	(1)
§1125	348	(2)
§1145 (omitting (a)(3), (a)(4), and (d))	350	(3)
¶2500 State Fraudulent Conveyance Statutes	353	(10)
Examples of Statute of Elizabeth States	353	(1)
Virginia	353	(1)
South Carolina	353	(1)
Uniform Fraudulent Conveyance Act (omitting §§13 and 14)	354	(2)
Uniform Fraudulent Transfer Act	356	(7)
¶2600 Delaware Corporate, Partnership, and LLC Statutes	363	(64)
Del. General Corporation Law	365	(1)
§102	365	(1)
§145 (omitting (d), (e), (h), (i), and (k))	366	(2)
§154	368	(1)
§160	369	(1)
§170(a)	369	(1)
§172	370	(1)
§173	370	(1)
§202	371	(1)
§244	372	(1)
§251	373	(3)
§252	376	(3)
§253	379	(1)
§259(a)	380	(1)
§261	381	(1)
§262 (omitting (f), (i), and (l))	381	(4)
§263(a)	385	(1)
§264(a)	385	(1)
§265(a) and (b)	385	(1)
§266(a) and (b)	386	(1)
§271	386	(1)
§388(a) and (b)	387	(1)
Del. Revised Uniform Limited Partnership Act	387	(1)
§17-208	387	(1)
§17-211(a), (b), and (h)	387	(2)
§17-212	389	(1)
§17-215(a), (b), and (g)	389	(1)
§17-217(a), (b), and (i)	389	(1)
§17-218(a), (b), (c), (d), (e), and (i)	390	(2)
§17-219	392	(1)
§17-301(d)	393	(1)
§17-302 (omitting (c))	393	(1)
§17-303	394	(3)
§17-401	397	(1)
§17-402(a)	397	(1)
§17-403(b)	398	(1)
§17-404	398	(1)
§17-405 (omitting (c))	398	(1)
§17-501	399	(1)
§17-502(a)(1)	399	(1)
§17-503	399	(1)
§17-504	400	(1)
§17-602(a)	400	(1)
§17-603	400	(1)
§17-604	401	(1)
§17-605	401	(1)
§17-607	401	(1)
§17-702(a) and (d)	402	(1)
§17-704(a)	402	(1)
§17-801	403	(1)
§17-804	404	(1)
§17-901(a)	405	(1)
§17-902(a)	406	(1)
§17-907(a), (b), and (c)	406	(1)
Del. Limited Liability Company Act	406	(1)
§18-101(4), (6), (7), (10), and (11)	406	(1)
§18-107	407	(1)
§18-108	407	(1)
§18-207	408	(1)
§18-209(a), (b), and (g)	408	(1)
§18-210	409	(1)
§18-212(a), (b), and (g)	409	(1)
§18-214(a), (b), (h), and (i)	410	(1)
§18-215(a), (b), (d), (e), (f), and (h)	410	(3)
§18-216	413	(1)
§18-301(b)(1), (d) and (e)	414	(1)
§18-302 (omitting (c))	414	(1)
§18-303	415	(1)
§18-305(g)	415	(1)
§18-306	416	(1)
§18-402	416	(1)
§18-403	416	(1)
§18-404 (omitting (c))	417	(1)
§18-405	417	(1)
§18-407	417	(1)
§18-501	418	(1)
§18-502(a)	418	(1)
§18-503	418	(1)
§18-504	418	(1)
§18-602	419	(1)
§18-603	419	(1)
§18-604	419	(1)
§18-605	420	(1)
§18-607	420	(1)
§18-702(a), (b), and (e)	421	(1)
§18-704	421	(1)
§18-705	422	(1)
§18-801	422	(1)
§18-803(a)	423	(1)
§18-804	423	(1)
§18-901(a)	423	(2)
§18-902(a)	425	(1)
§18-907(a), (b), and (c)	425	(1)
§18-1107(a)	426	(1)
¶2700 Cases	427	(104)
In re International Radiator Co.	427	(2)
Turner v. Bernstein	429	(1)
Malone v. Brincat	430	(2)
Edelman v. Fruehauf Corp.	432	(6)
Hanson Trust PLC v. ML SCM Acquisition Inc.	438	(21)
Mills Acquisition Co. v. Macmillan, Inc.	459	(25)
Paramount Communications Inc. v. QVC Network Inc.	484	(15)
In re Fort Howard Corp. Shareholders Litigation	499	(14)
Black & Decker Corp. v. American Standard, Inc.	513	(18)
¶2800 Other Materials	531
1916 Uniform Limited Partnership Act §7	531	(1)
1985 Revised Uniform Limited Partnership Act §§303, 607, 608, and 901	531	(3)
2001 Uniform Limited Partnership Act §§201(a), 303, 404, 508, 509, and 901(a)	534	(4)
American Bar Association Model Rule 1.7	538	(4)
The American Law Institute Federal Income Tax Project, Reporter's Study Draft 6/1/89, Subchapter C Supplemental Study, Harvard Professor William Andrews, pp. 13-37	542	(15)
Sheffield and Kimball, Organizing the Corporate Venture, (Practising Law Institute, ``Tax Strategies for Corporate Acquisitions, Dispositions, Spin-Offs, Joint Ventures, Reorganizations and Restructurings,'' vol. 8, 2000), §§301-304	557	(6)
Testimony Before the House Ways and Means Committee of Jack S. Levin (regarding proposed LBO Tax legislation), 2/2/89	563
Table of Internal Revenue Code Sections	1	(4)
Table of Treasury Regulations	5	(2)
Table of Treasury/IRS Rulings	7	(2)
Table of Federal Securities Laws, Rules, and Regulations	9	(2)
Table of Bankruptcy Code Sections	11	(2)
Table of State Fraudulent Conveyance Statutes	13	(2)
Table of Delaware Corporate, Partnership, and LLC Statutes	15	(2)
Table of Cases	17	(2)
Table of Other Laws	19	(2)
Table of Other Materials	21
Index	1