IRS Flags Abeinsa Ch. 11 Plan On $19M Tax Claim, Releases

Law360, Wilmington (December 1, 2016, 10:37 PM EST) -- The Internal Revenue Service objected Thursday to alternative energy firm Abeinsa Holding Inc.’s plan for Chapter 11 reorganization and affiliated company liquidation, saying Abeinsa owes an estimated $18.9 million in back taxes on years of unfiled returns.

Also challenged by the tax agency were broad liability limits and releases written into the company’s plan for nondebtor third parties, provisions that the IRS rejected and challenged as violating an Internal Revenue Code prohibition on suits or injunctions that block tax assessment.

“The debtors make no adequate showing...
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