Company: TGE
Filing Date: 2025-03-21
Form Type: DRS/A
Source: 0001013762-25-001106
Chunk: 383

Company: Generation Essentials Group
Filing Date: 2025-03-21
Form: DRS/A
Chunk 383
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 of PFIC Rules” and “— QEF Election and Mark -to -Market Election and Purging Election” as applied to the BSII Securities. If the Business Combination qualifies as a reorganization, a U.S. Holder of BSII Securities could nevertheless be required to recognize gain (but not loss) as a result of the Business Combinations, generally to the same extent as such U.S. Holder would have been required to recognize gain if the Business Combination has been treated as a taxable transaction. Section 1291(f) of the Code generally provides that, to the extent provided in Treasury Regulations, any person who transfers stock of a PFIC must recognize gain (if any) on such transfer notwithstanding any other provision of the Code. The U.S. Treasury Department has not promulgated final Treasury Regulations 247 under Section 1291(f) of the Code, but has promulgated proposed Treasury Regulations with a retroactive effective date. If such proposed Treasury Regulations were finalized in their current form, U.S. Holders of BSII Securities would generally be expected to recognize gain (if any) as a result of the Business Combination if: •BSII were treated as PFIC for any taxable year in which a U.S. Holder held BSII Securities; and •the U.S. Holder had not timely made, effective from the first taxable year of its holding period of BSII Securities during which BSII was treated as a PFIC, a valid QEF Election (as described below). The application of these proposed Treasury Regulations to BSII Warrants is unclear and may require gain recognition on the exchange of BSII Warrants for TGE Warrants pursuant to the Business Combination Agreement, especially since no QEF Election with respect to the BSII Warrants may be made under current law. Any gain so recognized by a U.S. Holder of BSII Securities would be subject to the rules discussed below under the sections entitled “— Application of PFIC Rules” and “— QEF Election and Mark -to -Market Election and Purging Election” as applied to the BSII Securities. However, it is difficult to predict whether, in what form, and with what effective date, final Treasury Regulations under Section 1291(f) of the Code and any such other PFIC rules may be adopted and how any such Treasury Regulations would apply. U.S. Holders of BSII Securities should consult their tax advisors regarding the application of Section 1291(f) of the Code and the proposed Treasury Regulations promulgated thereunder in