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In Case You Missed It: Partner Chip Bowles quoted on Lehman’s new order seeking blocked government taxes
Posted in General

In a recent Bloomberg article, Bingham Greenebaum Doll LLP partner Chip Bowles shared his thoughts on Lehman Brothers Holdings Inc., and their order to block government taxes on deals. Lehman, once the fourth-largest investment bank, is still in the process of liquidation following the biggest bankruptcy in U.S. history.

Now, Lehman has asked a judge to sign an order blocking governments from taking taxes on any potential deals it strikes with buyers. Lehman insists the order will “eliminate confusion and hesitation” of buyers and government offices, and “will simply and concisely reference and restate certain aspects of relief previously granted in the plan.” Lehman is selling assets to pay creditors another $32 billion by 2016 and plans payments totaling $65 billion in compensation for money lost in its 2008 downfall.

“Partly because of the scale of its liquidation, Lehman’s claim to be immune from taxes will draw a ‘counter-argument’ from governments seeking revenue,” said Bingham Greenebaum Doll LLP partner Chip Bowles.

Bowles believes governments will object and that Lehman doesn’t deserve any additional special treatment. According to Bowles, even though Lehman is no longer in bankruptcy, it is claiming that any asset sales or transfers that may be made now are protected under the liquidation plan. According to Bowles, governments might argue the sales are indeed taxable deals that are occurring long after the plan won court approval.

Read the full article on Bloomberg.

  • In Memoriam

    1959-2017 IN MEMORIAM

    Claude R. "Chip" Bowles Jr passed away on April 18, 2017.

    Chip was an incredibly smart and hardworking attorney who exhibited a conscientious and vigorous commitment to client service. Chip was also a man with a ...

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