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Treasury Department Issues Regulations Expanding the Scope of Qualified Reopenings

September 21, 2012

By ANDREW M. SHORT & MATTHEW G. BRIGHAM

On September 12, 2012, the Treasury Department and the Internal Revenue Service issued final regulations expanding the definition of qualified reopening under Treasury Regulations Section 1.1275-2(k) to include reopenings involving debt instruments that are not publicly traded and certain reopenings that occur more than six months after the original issue date. Commentators have been calling for amendments to allow corporate issuers of debt to reopen their debt instruments in a broader range of circumstances.