Mandatory Redeemable Preferred - Equity Not Debt, According to IRS
Recent Buzzes - VC Experts, Inc.
SEPTEMBER 22, 2010
New Preferred Shares would be issuable in two additional series and would be subject to mandatory redemption at the end of a certain number of years and would further facilitate the refinancing of ARPS.?Although However, dicta in a few older cases, combined with facts suggestive of a debt character, seemed to support holdings that certain preferred stock with mandatory redemption terms should be treated as debt for tax purposes. By Thomas F. Joyce and Theodore L.