Carrie Aiken, Johnson Tai, "Debt Restructuring Transactions – Issues, Strategies and Trends", 2016 CTF Annual Conference draft paper

Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(k)

Facts of conversion of DIP financing and USD bonds to equity (pp. 7-8)

Canco has US$1 billion of bonds (the "Bonds") payable to unrelated parties...

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Summary Under
Tax Topics - Income Tax Act - Section 39 - Subsection 39(2.02)

Background to s. 39(2.01) (pp. 13-14

Many Canadian companies have or had significant accrued foreign currency gains in their US dollar denominated...

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Summary Under
Tax Topics - Income Tax Act - Section 111 - Subsection 111(12)

A Canadian public company (Canco) will be recapitalized so that the provider of debtor-in-possession financing will end up holding 2/3 of the...

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Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition

Rescission if the parties could sue on the 2nd arrangement alone (p. 3)

[A] contract will generally be rescinded where the parties intend to...

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