Bankruptcy is not a process that should be feared by the American people – or by General Motors. Sometimes it acts as a grim reaper. Sometimes it has the power of the Phoenix allowing failed businesses to rise from their ashes. But always it is the great equalizer which is precisely what Congress intended. (more…)
As a bankruptcy attorney and former lawyer for the Feds, I feel compelled to point out the drawbacks of the current bailout to GM and other entities which might seek Chapter 11 protection. The bankruptcy laws afford no special protection to taxpayers in a bailout situation. As such, the massive outlay advanced by the American people may never get fully repaid in a Chapter 11 proceeding which is highly problematic.
By Charles Moster
“So what do you want for Christmas, little Ricky?”
“Well, I don’t want or need a Lexus and I’m already driving a Cadillac. Maybe putting GM into bankruptcy would be a super gift. After all, according to my bankruptcy attorneys it can come “pre-packaged”. Think how much I’ll save on the wrapping.” (more…)
By Charles Moster
Your business has thrived as a leading distributor of computer monitors. As the CEO/Founder, you have assembled an excellent management team and maintained double digit growth in an expanding market. Just as you are about to put your third plant on-line, the stock market experiences its most significant decline since the Great Depression. Almost overnight, your ability to obtain credit seems to vanish and several of your largest customers have cancelled pending orders. (more…)
* the springboard blog