Statutory Invalidation Of Unvested Sweat Equity Under Absolute Priority Rule Cramdowns
Senior creditors cram down reorganization plans by cancelling unvested sweat equity because future services do not constitute money or money worth.
Resolving Intercreditor Subordination Complexities When Outgoing Equity Holders Assert Fiduciary Claims Against Restructuring Schemes
Intercreditor turnover clauses redirect equity litigation recoveries to senior lenders unless direct personal claims establish duties independent of debt agreements.
Restructuring Disputed Equity Cancellations To Neutralize Income Tax Liabilities
Restructuring disputed equity cancellations through rescission or contested claim doctrines eliminates tax liabilities by recharacterizing share surrenders.
Resolving Interlocking Tax Liabilities And Cap Table Adjustments In Disputed Unvested Equity Cancellations
Disputed equity cancellations require concurrent cap table restatements and tax indemnity clauses to offset unrecoverable income inclusions.