It is expected that the American Recovery and Reinvestment Tax Act of 2009 (the Act) will be signed into law by President Obama on February 16, 2009. The Act contains a number of provisions intended to stimulate the US economy that will be of interest to, among others, troubled companies and their creditors. In particular, the Act provides for the delayed recognition of income resulting from the cancellation of indebtedness attributable to certain debt repurchases and suspends the application of the applicable high yield discount obligation ("AHYDO") rules for certain debt instruments. These and several other changes will provide valuable tax benefits for taxpayers in the calendar years 2008, 2009 and 2010. 

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