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Politics : The Obama - Clinton Disaster
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To: TimF who wrote (64419)1/20/2012 3:08:26 PM
From: DuckTapeSunroof1 Recommendation  Read Replies (1) of 103300
 
Re: "I said it was not a for profit effort to make companies more efficient.' "

I'm not even sure what you MEAN by that.

Restructuring (to enable a viable on-going business model to emerge from the ashes of federal bankruptcy protection) is the EXACT PURPOSE of this chapter of the US bankruptcy code.

That's what it is for.

And that is exactly what has happened. (GM is profitable again and just edged Toyota to once again become the largest automobile company in the world - measured by sales and market share.) They are hiring again, expanding their work force.

(So I think you might just have a bit of a hard road to hoe in trying to convince anyone that GM is not a 'for profit effort' given the actual results.... <g> And, second line on this point: the bankruptcy Plan of Reorganization was *accepted* by the federal bankruptcy judge who was overseeing GM's bankruptcy case. And, as I noted above, this chapter of bankruptcy law is designed SPECIFICALLY to allow a company to shed enough debts so that it can emerge as a viable on-going enterprise. Again... extremely hard to see how you could imagine that court approval didn't signify a 'for profit' enterprise and a 'more efficient' enterprise when the ENTIRE PURPOSE of that chapter of the US code is for exactly those purposes and that is what the Judge is legally tasked to see happens. :-)

As far as the specifics of the reorganization plan... as the old saying about bankruptcy reorganizations goes: "He who puts in the money calls the shots".

And that is exactly what Debtor in Possession Status grants: the ability to influence the shape of the reorganization (plan specifics still must be court approved though).

No one else in the entire world was willing to inject the money necessary to succeed in a bankruptcy reorganization plan (we know because they solicited all over the world for this money, even the existing bondholders refused to put up any money to see reorganization succeed).

So the US put the money into the reorganization effort and was granted Debtor in Possession Status by the court.....
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