Thacher Proffitt Publishes Bankruptcy Bulletin That Discusses Supreme Court Ruling in Florida Department of Revenue v. Piccadilly Cafeterias, Inc.

NEW YORK--(BUSINESS WIRE)--Thacher Proffitt & Wood LLP announced today the publication of “Florida Department of Revenue v. Piccadilly Cafeterias, Inc.: The Supreme Court Rules that Asset Sales Made Before the Confirmation of a Bankruptcy Plan are not Exempt from Stamp Taxes.” The bulletin provides background on the case and a discussion of the 7-2 Supreme Court decision, which was handed down on June 16, 2008.

Hugh McDonald, co-chair of Thacher Proffitt’s Distressed Assets Group and a partner in the Bankruptcy Group, said, “This is the first instance in which the Supreme Court has held that asset sales made before the confirmation of a Chapter 11 bankruptcy plan are not exempt from stamp taxes, which resolves a circuit split. Going forward, bankruptcy asset sales that implicate stamp taxes may need to be delayed until confirmation of a plan. Such delays may impact the strategy and timing of bankruptcy cases.”

The bankruptcy bulletin was authored by Mr. McDonald, partner Jonathan D. Forstot, and associates Louis A. Curcio and Craig Rokuson.

Useful Resources

• Get an electronic copy of “Florida Department of Revenue v. Piccadilly Cafeterias, Inc.: The Supreme Court Rules that Asset Sales Made Before the Confirmation of a Bankruptcy Plan are not Exempt from Stamp Taxes”
• Learn about the authors: Hugh McDonald, Jonathan D. Forstot, Louis A. Curcio, and Craig Rokuson.
• View recent articles on bankruptcy and distressed asset situations.
• Receive bankruptcy-related articles as they are published; email lcospito@tpw.com with the subject line “Send me bankruptcy articles.”
• Learn about our Bankruptcy and Distressed Assets Groups.

About Thacher Proffitt & Wood LLP

Founded in 1848, Thacher Proffitt has more than 250 lawyers in four locations - New York, NY, Washington, DC, White Plains, NY, and Summit, NJ. We advise clients domestically and internationally on a range of matters involving: banking, bankruptcy, compensation and benefits, corporate and securities, international, litigation and dispute resolution (including subprime), real estate, structured finance, tax, technology and intellectual property, and trusts and estates. Learn more about our creative legal solutions at www.tpw.com, including our industry awards and rankings.