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Politics : American Presidential Politics and foreign affairs

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To: TimF who wrote (44554)	8/2/2010 12:47:55 PM
From: DuckTapeSunroof	Read Replies (1) of 71588

Re: "The government having an influence when it is providing the bailout...." It is called "Debtor in Possession" status. It is an aspect of American bankruptcy law that has existed for DECADES. The GOAL of this provision is congruent with the general thrust of the entirety of American bankruptcy law: to help a strong commercially viable enterprise emerge from the ashes of it's previous commercial failure.... ANYONE could have made the choice to inject the extra funds needed to speed GM's process through the bankruptcy process (and thereby gain some measure of court approved extra control over the bankruptcy decisions) if they had wanted to! Anyone in the entire world. There was an open solicitation for funding to help GM emerge in the quickest possible time from it's bankruptcy. No one stepped up to the plate except for Uncle Sam. (So, any debtors who feel that they 'got shafted' have only themselves to blame --- they could have injected new funding and been granted "Debtor in Possession" status by the federal bankruptcy court if they had wanted to and thereby gained for themselves that extra degree of control over the debt-shedding decisions that the court was forced to make... but none did.) The purpose of American bankruptcy law is PRIMARILY to craft a strong commercially viable enterprise out of the ashes of it's previous commercial failure... and ONLY OF SECONDARY PURPOSE is the maximization of returns for earlier debtors. When push comes to shove the process always favors creating a viable enterprise over the 'sanctity' of debts. American bankruptcy courts have been specifically granted unique legal authority to reorder debts in order to craft viable businesses.

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