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Coral Air is seeking to expend operations in Mexico by acquiring Modelo Airlines in either a stock-and-cash deal, or an all-stock deal. Coral Air's CEO is very risk-adverse and is concerned above all about keeping Coral insulated from Modelo's liabilities.

Modelo's shareholders want some cash, can the transaction be structured to meet their requirements and still be tax-free? If so, what types of reorganizations are possible?

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