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Haynes and Boone Releases Fall 2018 Energy Roundup

Haynes and Boone, LLP has released its?áFall 2018 Energy Roundup, a comprehensive report on the industry that reflects an improved outlook for oil and gas producers. The Energy Roundup includes the firm?ÇÖs latest ?Ç£Borrowing Base Redeterminations Survey,?Ç¥ which captures September polling of oil and gas producers, oilfield services companies, energy lenders, private equity firms, and other industry participants to get their predictions about producers?ÇÖ future borrowing capacity or ?Ç£borrowing bases.?Ç¥ Producers?ÇÖ loans are assessed by their lenders twice a year to determine how much credit will be available based upon the collateral value of the producers?ÇÖ property, referred to as their ?Ç£borrowing bases.?Ç¥ The borrowing bases turn on banks?ÇÖ projections about future prices for the producers?ÇÖ oil and gas reserves. The survey, which the firm has conducted twice a year since April 2015, offers a clear, forward-looking view about the projected financial state of the domestic energy market. The latest… Continue Reading

UPDATED: Energy Bankruptcy Reports and Surveys

Haynes and Boone Energy Roundup,?áa comprehensive report on the industry that reflects an improved outlook for oil and gas producers – most recent update: September 26, 2018.   Borrowing Base Redeterminations Survey, a forward looking survey that reveals what lenders, borrowers and others in the industry expect regarding the borrowing base redeterminations in light of oil price uncertainty – most recent update: September 26, 2018.   Oil Patch Bankruptcy Monitor, which includes details on oil and gas producers that have filed for bankruptcy since the beginning of 2015 – most recent update: August 31, 2018.   Oilfield Services Bankruptcy Tracker, which includes details on oilfield services companies that have filed for bankruptcy since the beginning of 2015?á – most recent update: August 31, 2018.   Midstream Report, which includes details on the midstream companies that have filed for bankruptcy since 2015 – most recent update: August 31, 2018.

Church Plan Exemption Class Action Advances, Court to Determine What Constitutes a ?Ç£Principal Purpose Organization?Ç¥

Last year, the U.S. Supreme Court jointly heard and ruled on a series of long-running, class action lawsuits challenging the church plan status of retirement plans sponsored by certain religiously affiliated healthcare systems. In its opinion, the Supreme Court overturned the lower courts?ÇÖ decisions and held that such plans could qualify as church plans, even if they were not originally established by a church, if the plans were maintained by a church-affiliated organization whose principal purpose is the administration or funding of the plan (view our prior blog post on this Supreme Court opinion). The cases were then remanded back to their original district courts for further proceedings consistent with the Supreme Court?ÇÖs order. One of those federal district courts recently ruled, in partially denying a motion to dismiss, that the plaintiffs had pled enough facts to adequately allege a claim that the Dignity Health retirement plan was not a… Continue Reading

Eligible Recipients of Incentive Stock Options

Granting ?Ç£incentive stock options?Ç¥ qualifying under Section 422 of the Internal Revenue Code (?Ç£ISOs?Ç¥) can often result in more favorable tax treatment to the recipient, provided that the recipient holds the option and the optioned shares for the required period of time. When granting ISOs, it is important to make sure that the plan document and administrative procedures only permit such options to be granted to eligible recipients. For purposes of ISOs, eligible recipients are limited to employees of a granting corporation (or its subsidiaries that are corporations). Independent contractors, non-employee directors, and employees of entities that are not corporations for tax purposes are ineligible to receive ISOs.

IRS Private Letter Ruling Approves Student Loan Repayment Feature in 401(k) Plan

A recently released IRS Private Letter Ruling (the ?Ç£PLR?Ç¥) describes a potential approach for an employer to integrate a student loan repayment program with the employer?ÇÖs defined contribution plan. As described in the PLR, the employer proposed to amend its 401(k) plan to permit employees to enroll in a voluntary student loan benefit program (the ?Ç£Program?Ç¥) under which the employer would make a nonelective contribution to an employee?ÇÖs account under the plan for each pay period during which the employee made a student loan repayment equal to a specified amount of eligible compensation. The IRS ruled that, based on the conditions described in the PLR, the Program did not violate the Internal Revenue Code?ÇÖs ?Ç£contingent benefit?Ç¥ prohibition (i.e., an employer cannot offer a benefit, other than a matching contribution, that is contingent upon the employee making contributions to a 401(k) plan). The PLR did not address what impact such a… Continue Reading

September 2018