- 2 -
R. James Curphy, for petitioner.**
T. Richard Sealy III, for respondent.
SUPPLEMENTAL OPINION
SWIFT, Judge: This matter is before us on reconsideration
of our opinion at 103 T.C. 59 (1994), in which we concluded that
petitioner realized a taxable gain in connection with a "Mexican
debt-equity-swap" transaction. On October 13, 1994, we granted
petitioner's motion for reconsideration, and we requested that
petitioner and respondent file briefs on the points raised in
petitioner's motion for reconsideration. We also allowed amici
briefs to be filed by Chrysler Corp. and by Harold L. Adrion.
On reconsideration, petitioners and the amici curiae make
three primary arguments: (1) That the value of the Mexican pesos
that were received by petitioner (or by Procesos, petitioner's
Mexican subsidiary corporation) did not exceed petitioner's U.S.
dollar cost of participating in the transaction and that
petitioner, therefore, realized no gain on the transaction;
(2) that the transaction should not be viewed as a taxable
exchange because petitioner could not legally own an interest in
the U.S. dollar-denominated debt of the Mexican Government; and
(3) that if gain was realized over petitioner's cost of
participating in the transaction, such gain should be regarded,
Briefs amici curiae were filed by James P. Fuller, Kenneth
B. Clark, and Jennifer L. Fuller, as attorneys for Chrysler
Corp., and by Harold L. Adrion.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011