Borrowers, developers, investors, and other participants routinely engage in joint ventures, alliances, and other contractual arrangements when organizing their projects. Restructuring and recapitalization of these ownership vehicles is often a critical component of a successful workout. In other cases, bringing a new participant into a transaction and/or shifting control over ownership vehicles from one participant to another can get off the ground a faltering project that would otherwise fail. Arent Fox routinely advises clients in identifying the most business-efficient and tax-efficient methods of structuring their arrangements, as well as for modifying the structure of their arrangements, at every step of a project’s life.

We are well versed in the use of preferred equity, mezzanine loans, and other capital infusion techniques. Our experience covers the entire range of joint-venture structuring; including entity formation, negotiation of venture terms and operating agreements, tax advantaged structuring, and tax issue identification and resolution.

Arent Fox attorneys help our clients to evaluate and make informed decisions in workout situations regarding cancellation of indebtedness income and deferral techniques as well as other tax risks and opportunities involved in workout transactions, including strategies to minimize a particular risk or to seize a particular opportunity. In all cases, our focus includes addressing our clients’ tax concerns while allowing the underlying economic transaction to have the desired effect on restoring the project or transaction to a “no-default” status.