[Federal Register Volume 73, Number 248 (Wednesday, December 24, 2008)]
[Rules and Regulations]
[Pages 78969-78970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30717]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9434]
RIN 1545-BC88


Creditor Continuity of Interest; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains a correction to final regulations (TD 
9434) that were published in the Federal Register on Friday, December 
12, 2008 (73 FR 75566) providing guidance regarding when and to what 
extent creditors of a corporation will be treated as proprietors of the 
corporation in determining whether continuity of interest (''COI'') is 
preserved in a potential reorganization. These final

[[Page 78970]]

regulations are necessary to provide clarity to parties engaging in 
reorganizations of insolvent corporations, both inside and outside of 
bankruptcy. These final regulations affect corporations, their 
creditors, and their shareholders.

DATES: Effective Date: This correction is effective December 24, 2008, 
and is applicable on December 12, 2008.

FOR FURTHER INFORMATION CONTACT: Jean Brenner (202) 622-7790, Douglas 
Bates (202) 622-7550, or Bruce Decker (202) 622-7550 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this document are 
under section 368 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9434) contains an error that 
may prove to be misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 9434), 
which was the subject of FR Doc. E8-29271, is corrected as follows:
    On page 75566, column 3, in the preamble, under the paragraph 
heading ``Explanation of Provisions'', second paragraph of the column, 
line 13, the language ``amount of acquiring corporation stock'' is 
corrected to read ``amount of issuing corporation stock''.

LaNita Van Dyke,
Chief, Publications and Regulations, Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
 [FR Doc. E8-30717 Filed 12-23-08; 8:45 am]
BILLING CODE 4830-01-P