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Troubled Chinese property developer Kaisa defaulted this week on its 12.875% notes due 2017 and 8.875% senior notes due 2018. It’s still unclear what this means for bankruptcy in the country

Deutsche Bank is the latest international bank to reach a settlement with over Libor manipulation, but its legal troubles – and benchmark-related investigations – are far from over

A recent tax case out of the Fifth Circuit approved a taxpayer's strategy to make the best of a bad investment. According to the facts of Pilgrim's Pride v Commissioner, the taxpayer purchased preferred stock from two corporations (Issuers) for a total of $98.6 million in 1999. By 2004, the stock had declined significantly in value and the Issuers offered to buy back the stock for $20 million. The taxpayer determined that the best course of action was to abandon the stock for no consideration because a $98.6 million ordinary abandonment loss would generate tax savings more valuable than the $20 million offered by the Issuers. Accordingly, the taxpayer surrendered the stock to the Issuers, terminating its ownership rights with respect to the Issuers. The taxpayer then claimed an ordinary loss of $98.6 million. The Internal Revenue Service (IRS) disagreed with the character of the loss, arguing that the abandonment should be treated as a sale or exchange, resulting in a capital loss (subject to limitation), rather than an ordinary loss.

Truong Huu Ngu Taro Hirosawa Vague regulations, bureaucratic requirements and changing practices may frustrate foreign investors hoping for deals in Vietnam to close quickly. But from this July, changes brought about by the country's revised Investment Law and revised Enterprise Law will give foreign acquirers greater confidence when investing in Vietnam. Under the new Investment Law, share acquisitions by foreign buyers will only need to be registered with local licensing authorities: (i) if the target company is involved in certain types of highly-regulated business; or, (ii) the acquisition results in majority foreign ownership of the target company. After registration, the acquired company may simply go ahead with changing its membership record with the enterprise registrar (in the case of a limited liability company) or update the registrar regarding foreign ownership (in the case of a shareholding company). Theoretically, these procedures will be able to be completed within 18 days. This means that the existing, more time-consuming, procedure requiring the acquired company to obtain a so-called investment certificate will be phased out.

The lighter side of the past month in the world of financial law

More bespoke capital market instruments are being sold out of emerging markets, despite dropping volumes caused by instability

El Salvador’s banking market has been growing more competitive and attractive over the last decade. Oscar Samour Santillana of Consortium Centro America Abogados analyses whether the banking sector must diversify and make room for new players

By modernising its legal framework, the country has become a leader in the Caribbean. Guzmán Ariza's Fabio J Guzmán-Saladín and Fabio J Guzmán-Ariza explain why its FDI prospects continue to grow

Alvarado y Asociados's Gloria Maria de Alvarado and Favio Josué Batres P explain why the country offers opportunities for investors looking for an entry point into Latin America

As the country gets set to complete the expansion of the canal, hopes are high for increased trade and development. Arias Fabrega & Fabrega's Ricardo M Arango explains why