Cancellation of Debt Income (CODI): Tax and Valuation Issues in Debt Restructurings
Debt forgiveness may trigger CODI, generating significant tax liabilities.
Debt forgiveness may trigger CODI, generating significant tax liabilities.
Identifying, measuring,and applying the adjustment for EO can be a complex and iterative process.
Businesses facing financial stress may need to restructure through an out-of-court workout, a Chapter 11 reorganization, or a Chapter 7 liquidation. In all cases, an objective valuation is a critical component.
Even with a massive infusion of federal funding for businesses, a rise in bankruptcies is beginning.
We were retained by a leading provider of wireless messaging and information services to provide various valuation services for reorganization under Chapter 11 of the U.S. Bankruptcy Code.