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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (2384)	3/25/2001 12:20:13 PM
From: Think4Yourself	Respond to of 23153

Some interesting legal issues surrounding SCE and PG&E troubles. biz.yahoo.com Sloan also reports that by not paying their creditors on time, Pacific Gas and SoCal Edison have become what bankruptcy law calls ``insolvent,'' and as a result, the companies' boards of directors are running a big, but little-recognized legal risk by not having already filed for bankruptcy. ``When your company is insolvent, your fiduciary duty is to the creditors,'' says Elizabeth Warren, a Harvard Law School bankruptcy professor. ``The directors are facing personal liability for failing their responsibility to the creditors of the company.'' Personal liability for $14 billion? Ouch!