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.
* the springboard blog