Res 1993-185 - Laserfiche WebLink

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16AE hands. The extent to which consideration distributable Wlder the Plan is allocable to such interest is uncertain. A Creditor which previously has included in income accrued but unpaid interest attributable to its existing Claim will recognize a tax loss to the extent such accrued but unpaid interest is not satisfied in full. For the purpose of the above discussion, "accrued" interest means interest which was accrued while the underlying Claim was held by the holder. Each Creditor should consult with its own tax advisor as to whether a portion of the consideration received in exchange for its Claim should be allocated to interest and whether its Claim is subject to the original issue discOWlt or market discount provisions of the Tax Code, and if so, as to the tax consequences thereof. 3. Characterization of Gain or Loss Generally, in the case of a holder whose Claim constitutes a capital asset, gain or loss recognized by such holder will be capital gain or loss, except to' the extent of interest and subject to special rules for accrued market discount and unaccrued original issue discount and subject to speclal exceptions for certain classes of holders (such as banks). Otherwise, ~uch gain or loss will be ordinary income or loss. 4. Withholding from Claim Payments The Debtor will withhold any amoWlts required by law from payments made to Credi to rs. In addition, Creditors may be required to provide general tax information to the Debtor for tax reporting and information purposes. XIV. LITIGATION The Debtor's existing litigation is listed in Exhibit "D" attached hereto. a. Malpractice Litiqation: The Debtor is subject to litigation of the types common to the health care industry, e.g. malpractice and hospital liability lawsuits and employee related litigation. Debtor maintains hospital professional liability insurance and otfier insurance coverage commonly held by health care providers. Debtor, Healthcare and certain of its Affiliates, self insure their hospital professional liability up to certain limits: $500,000 per claim with a $5,000,000 aggregate deductible. The limits of coverage are $25,000,000 per claim inclusive of the $500,000 deductible, with an annual aggregate limit of $30,000,000. Àddi tionally, for some years, Healthcare and certain of the Affiliates may have additional coverage as an additional insured of Excel Insurance Company, Ltd. in the amount of $50,000,000 or $75,000,000 per occurrence or claim with an annual aggregate for all covered occurrences and claims being a life amount and a per occurrence retention amount of $25,000,000. - 30 - a-;!OISS