Page:United States Statutes at Large Volume 102 Part 4.djvu/428

 102 STAT. 3398

26 USC 382 note.

26 USC 382 note.

PUBLIC LAW 100-647—NOV. 10, 1988 to qualified workouts) shall apply to such debt restructuring." (13) Subparagraph (D) of section 621(f)(2) of the Reform Act is amended— (A) by striking out "or reorganization", and (B) by adding at the end thereof the following new sentence: "For purposes of the preceding sentence, in applying section 382 (as so in effect), if a person has a warrant to acquire stock, such stock shall be considered as owned by such person." (14) Section 621(fK3) of the Reform Act is amended by striking out "after December 31, 1986". (15) Paragraph (4) of section 621(f) of the Reform Act is amended by striking out the last sentence and inserting in lieu thereof the following: "Any regulations prescribed under section 382 of the Internal Revenue Code of 1986 (as added by subsection (a)) which have the effect of treating a group of shareholders as a separate 5-percent shareholder by reason of a public offering shall not apply to any public offering before Jsuiuary 1, 1989, for the benefit of institutions described in section 591 of such Code. Unless the corporation otherwise elects, an underwriter of any offering of stock in a corporation before September 19, 1986 (January 1, 1989, in the case of an offering for the benefit of an institution described in the preceding sentence), shall not be treated as acquiring any stock of such corporation by reason of a firm commitment underwriting to the extent the stock is disposed of pursuant to the offering (but in no event later than 60 days after the initial offering)." (16) Subparagraph (A) of section 621(fK7) of the Reform Act is amended by striking out "the parent corporation referred to in section 203(d)(13XB)" and inserting in lieu thereof "a parent corporation incorporated in Msu-ch 1980 under the laws of Delaware". (17XA) Subsection (e) of section 382 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(3) TREATMENT OF FOREIGN CORPORATIONS.—Except as otherwise provided in regulations, in determining the value of any old loss corporation which is a foreign corporation, there shall be taken into account only items treated as connected with the conduct of a trade or business in the United States." (B) The amendment made by subparagraph (A) shall apply to any ownership change after June 10, 1987. For purposes of the preceding sentence, any equity structure shift pursuant to a plan of reorganization adopted on or before June 10, 1987, shall be treated as occurring when such plan was adopted. (18) Subparagraph (C) of section 382(1)(5) of the 1986 Code is amended to read as follows: "(C) REDUCTION OF TAX ATTRIBUTES WHERE DISCHARGE OF INDEBTEDNESS.—

"(i) IN GENERAL.—In any case to which subparagraph (A) applies, 50 percent of the amount which, but for the application of section 108(e)(10XB), would have been applied to reduce tax attributes under section 1080t)) shall be so applied.

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