More on the GM Bankruptcy

http://www.futureofcapitalism.com/2009/06/more-on-the-gm-bankruptcy

Two bankruptcy law professors tell USA Today that the GM bankruptcy in essence avoids giving the full due process of law to the company's creditors. "It's a form of railroading. The creditors will get their token day in court before the sale is approved, but they won't get a meaningful day in court," says Lynn LoPucki, a University of California-Los Angeles, bankruptcy law professor. A bankruptcy law professor at the University of Michigan, John Pottow, tells the paper that those who argue that the government-GM tactic "bypasses both the spirit and intent of the bankruptcy code do have a good point."

by Editor  |  Jun 3, 2009 at 6:49 am Related Topics:  Auto Industry receive the latest by email: subscribe to the free futureofcapitalism.com mailing list