Assessing the Chrysler Bankruptcy

[Quantum Windbag]

[FONT=Myriad Roman, Arial, Helvetica, Sans-serif;]Chrysler entered and exited bankruptcy in 42 days, making it one of the fastest major industrial bankruptcies in memory. It entered as a company widely thought to be ripe for liquidation if left on its own, obtained massive funding from the United States Treasury, and exited via a pseudo sale of its main assets to a new government-funded entity. The unevenness of the compensation to prior creditors raised considerable concerns in capital markets, which we evaluate here. We conclude that the Chrysler bankruptcy cannot be understood as complying with good bankruptcy practice, that it resurrected discredited practices long thought interred in the 19th and early 20th century equity receiverships, and that its potential, if followed, for disrupting financial markets surrounding troubled companies in difficult economic times is more than small. [/FONT]

SSRN-Assessing the Chrysler Bankruptcy by Mark Roe, David Skeel
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[Neubarth]

"via a pseudo sale of its main assets to a new government-funded entity."

Gosh, and I thought it was the Wops.

 

[CrusaderFrank]

But the UAW made out OK

 

[The Rabbi]

Mitch Daniels, governor of Indiana has a great piece on this, and how the bankruptcy overturned the rule of law in this country.
Mitch Daniels: Hoosiers vs. Crony Capitalism - WSJ.com

 

[calvin]

Bankruptcy is a major issue and its need proper guidance. You can get guidance from any Bankruptcy Lawyers. Every country and state differs in there law and so you require proper guidance on Bankruptcy. Many time laws get change or modify which you are not aware of so again here require some well qualified lawyer to understand your case.