As previously reported, on October 19, 2018 GenOn Energy requested a Court order affirming that there are no stamp taxes owed in respect of a recorded deed that the Debtors are obligated to deliver pursuant to the Debtors’ Plan and a related settlement agreement [Docket No. 1902]. The County had argued that $6.7 million was owed by the Debtors in respect of stamp taxes. The motion explained, “The Debtors bring this Motion to enforce the Confirmation Order, which requires that taxing authorities forego stamp taxes on material transfers made under the Plan, including non-debtor GenMa recording the deed of trust in Chalk Point. Setting aside that the County’s challenge to the Plan’s tax exemption should have been brought months ago, their legal challenge is misplaced….There are three requirements for a transfer to be tax exempt: (1) there must be a stamp tax (or a similar tax); (2) imposed upon the making or delivery of an instrument of transfer; (3) ‘under’ a confirmed chapter 11 plan. The County has not disputed (and with good reason) that the Transfer Taxes meet the first two requirements. This dispute centers on the third requirement: whether non-debtor transfers can be ‘under’ a plan. Section 1146(a), by its plain terms, exempts non-debtor transfers under a confirmed plan from stamp taxes. The text, context, and purpose of the statute compel this conclusion…The plain text of section 1146 applies to transfers under a confirmed plan. Under settled principles of statutory construction, interpreting a statute begins with the text—and also ends with the text is unambiguous.”
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The post GenOn Energy – Seeks Court Approval of Tax Settlement Which Reduces Stamp Taxes Relating to Chalk Point Power Plant from $6.7 million to $1.05 million appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.