The Stimulus Act - ARRA

The American Recovery and Reinvestment Act of 2009 includes few provisions that will have an impact on private equity and venture capital funds.  One provision that could affect private equity funds and their portfolio companies is a tax provision that will permit companies to restructure their outstanding troubled debt and defer the tax consequences thereof for five years.  The provision will allow companies to more easily deleverage their balance sheets, and thus should be considered by private equity funds and their portfolio companies which have outstanding debt.

Read the entire article on debt restructuring tax relief.