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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (35573)	5/18/2009 9:00:53 PM
From: TimF	Read Replies (1) \| Respond to of 71588

Re: "The law can say something should be the primary, even overriding goal, but that doesn't make it so." Actually... yes it does. (That is the priority for chapter 11s. Crafting a VIABLE ongoing business.) That's the official goal, it doesn't mean that everything done in the name of that goal, severs the goal, or is even intended to serve that goal. That action is specifically authorized under chapter 11 bankruptcy regulations... and not at all uncommon. It is uncommon. And if it where not that would be even worse not better. If the government can pressure creditors to go along with it than it isn't illegal (well it could be depending on the form of pressure, but I don't think it is in this case), but its still political pressure from the government to distort the bankruptcy agreement to favor the well connected over those with superior contract rights to the funds. Not illegal but definitely a bad idea.