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by Kent Hoover
Some turnaround specialists are concerned the government-guided bankruptcy reorganizations of Chrysler and GM could make it harder for companies to obtain capital. In these cases, the companies’ labor union, the United Auto Workers, received more favorable treatment than the companies’ secured creditors. That violates well-established bankruptcy law principles, said Peter Kaufman, president of Gordian Group LLC’s restructuring practice in New York. The U.S. is the most welcoming place in the world for capital, particularly for loans, he said, because “everyone knows what their downside is.”
Obama’s handling of bankruptcies may make more lenders ‘gun shy’ - Business First of Columbus:
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