S&C Critical Insights – Using Rights Plans to Preserve Net Operating Losses Under COVID-19

April 1, 2020



In this episode of S&C’s Critical Insights podcast series, Eric Krautheimer, one of the Firm’s leading M&A partners, and Melissa Sawyer, co-head of S&C’s Corporate Governance & Activism practice, discuss how boards can take appropriate steps to protect valuable net operating losses (NOLs) during COVID-19. Based on recent market moves and the potential for a prolonged period of economic uncertainty, businesses experiencing significant revenue drops as a result of COVID-19 may have, or will likely accumulate, significant NOLs that can be used to offset corporate tax liabilities in future years. Eric and Melissa discuss considerations for companies looking to adopt an NOL rights plan, one of the most effective ways companies can employ to protect NOLs.