Thursday, May 26, 2016

#TBT: Project Sales: Traps for the Unwary


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in the Project Finance Newswire in February 2003 and written by Allen Millera partner in Chadbourne's Corporate Group.




Project Sales: Traps for the Unwary

Merchant power companies seeking to sell or refinance projects to increase liquidity face wary purchasers or lenders who are giving renewed scrutiny to a number of legal issues that extend the due diligence inquiry well beyond examination of the project and the contracts to which the project company is a party. In many respects, the law may not be what one thinks it is. What follows is a discussion of a few traps for the unwary.

Thursday, May 19, 2016

#TBT: Tax Issues and Opportunities in Restructuring Contracts


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in Project Finance Internation in April 1997 and written by Keith Martina partner in Chadbourne's Project Finance Group.





Tax Issues and Opportunities in Restructuring Contracts


A cartoon recently in the newspaper showed a group of football players in a huddle. One asks, "Have we considered the tax consequences if we punt?" Thankfully, not all actions have tax consequences, but some do and it can be very costly not to take them into account.

How to Satisfy the New Begun Construction Guidance in IRS Notice 2016-31

By Michael Masri in New York and Scott Cockerham in Washington

New IRS guidance for developers of wind farms and other renewable energy projects that qualify for production tax credits modifies the safe harbor period in which a project can be placed in service without the developer having to prove that the work was continuous.

The new rule provides that a project will be deemed to meet the continuous work requirement if it is placed in service by the later of (1) four calendar years after the calendar year in which construction began, or (2) December 31, 2016.

The guidance is in Notice 2016-31. It was originally issued on May 5, 2016, and included only the four-year safe harbor rule. The IRS reissued the guidance on May 18, 2106 to add the alternative December 31, 2016 deadline. The updated guidance also corrects a math error in an example in the original guidance, and states that it is effective for projects placed in service after January 2, 2013.

Tuesday, May 17, 2016

Surprise Move by the DC Circuit Court of Appeals in the Clean Power Plan Litigation

By Sue Cowell, in Washington

The DC Circuit Court surprised everyone Monday by rescheduling Clean Power Plan oral arguments to September 27, 2016 before the court's full panel of judges. Although this delays the date when the case will be heard by the court, it removes the possibility of an appeal from the prior three-judge panel to the full panel of DC Circuit Court judges as a possible interim step before likely being heard by the US Supreme Court.

Thursday, May 5, 2016

#TBT: Asset Sales in Bankruptcy


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in the February 2010 Project Finance Newswire and that is a transcript of a discussion with Andrew Rosenblatt, a bankruptcy partner at Chadbourne.