WASHINGTON -(Dow Jones)- Paul Allen, the billionaire co-founder of Microsoft Corp. (MSFT) and owner of the Portland Trail Blazers basketball team, might save hundreds of millions in taxes over the next few years thanks to a provision in the economic-stimulus legislation signed Tuesday by U.S. President Barack Obama.
The provision is aimed at helping companies that are trying to restructure their debt, by delaying taxes that would otherwise be due when debt holders agree to forgive a portion of the debt.
One such company is cable provider Charter Communications Inc. (CHTR), where Allen serves as chairman and holds a majority stake. Charter announced earlier this month it will file for Chapter 11 bankruptcy protection as part of a restructuring agreement with some of its debt holders to reduce its debt load by $8 billion.
The new law temporarily suspends taxes on debt amounts that are forgiven in 2009 and 2010. Accordingly, Charter and Allen, as a major partner, would probably benefit, said Robert Willens, president of Robert Willens LLC, a tax and accounting advisory firm.......
