Asset Sale

Asset Sale

The sale of a loan by a bank to a third party. An asset sale ensures that the bank receives cash for a loan it has made and reduces its potential for bad debt. It removes the loan from the bank's portfolio, unless the bank has an agreement with the third party to take the loan back in the event of default.
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Pursuant to binding term sheets agreed to by the respective parties and approved by the Court: (i) Avis will acquire 12 Locations (the " Avis Asset Sale ") for consideration of approximately US$6 million in cash, plus the assumption of certain liabilities of the Advantage business associated with such Locations; and (ii) Hertz will acquire 10 Locations (the " Hertz Asset Sale ") for consideration of approximately US$200,000 in cash, plus the assumption of certain liabilities of the Advantage business associated with such Locations and the continued right of Advantage to use Hertz's vehicle fleet during April, May and June 2014, which the parties agreed had a value of approximately US$3.
Furthermore, unlike a stock sale, an asset sale triggers both a corporate level tax and a shareholder level tax.
Even after the 2003 Tax Act's tax reductions, this double taxation of the purchase price paid to a C corp in an asset sale produces a 53 percent tax rate after taking into account the effect of California tax.
the asset sale deemed to occur as a result of a Sec.
S persons, each of whom owns at least 10 percent directly or indirectly), or a Foreign Personal Holding Company (FPHCO), some or all of the deemed asset sale gain could be Subpart F or FPHCO income.
In the second quarter, HCR sold 21 assisted living residences to Brookfield, Wisconsin-based Alterra or placed them in escrow awaiting funding as part of a previously announced asset sale agreement covering 28 facilities.
750% Senior Notes due 2016 issued on August 17, 2010 (the "2016 Senior Notes issued August 2010" and, collectively with the 2013 Notes and the 2016 Senior Notes issued October 2009, the "Notes"), in accordance with the terms of the indentures governing the Notes (the "Indentures"), at a purchase price of 100% of the principal amount thereof, plus accrued and unpaid interest thereon to, but not including, the Asset Sale Offer Payment Date (as defined below).
Catalyst has confirmed that it will assume 41 United States airport concession agreements used in the Advantage business from Simply Wheelz and the Company (the " Catalyst Asset Sale ") pursuant to an asset purchase agreement entered into among Catalyst, Advantage and the Company and approved by the Court.
From a tax perspective, individual owners of a C corporation prefer a stock sale over an asset sale, because it produces only one level of tax (shareholder), not two (corporation and shareholder).
These statements include those related to the AVINZA asset sale and closing.
Historically, a seller would report an asset sale using the installment method.
The closing of the asset sale transaction is expected to occur on or before February 15, 2007 and is subject to the satisfaction of due diligence and other customary closing conditions.