Debt for Equity Swaps

9 April 2009

It may be possible to find a silver lining in the cloud of economic woes being experienced by many struggling businesses unable to meet their interest and principal obligations. One option that may be open to a debtor is to recapitalise the business by entering into a debt for equity swap arrangement. This Tax Brief considers some of the tax outcomes for creditors and debtors arising from a debt for equity swap. For our full Tax Brief - click here

These notes are in summary form designed to alert clients to tax developments of general interest. They are not comprehensive , they are not offered as advice and should not be used to formulate business or other fiscal decisions.

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