Featured in OILMAN Magazine, Weaver tax partners, Jon Pezzi and Jon Roberts, take a deep dive into the tax impact of oil and gas partnerships looking to discharge debt through bankruptcy, insolvency or debt restructuring.
- Many oil and gas companies have sought debt reduction through bankruptcy protection or debt restructuring in response to financial difficulty brought on by the COVID-19 pandemic. When considering options to reduce debt, companies should understand the tax consequences that these actions can bring. This is particularly true for partnerships, which have special rules that affect certain allocations related to canceled or restructured debt.
Partnerships that do not fully understand the tax implications of bankruptcies and debt restructurings could cause individual partners to incur an unexpected tax liability.