BK GUY

Whatever Happened to Bankruptcy?

This bailout is nothing like Bankruptcy. In Bankruptcy, all of the company's contracts (executory) can be accepted or rejected. In Bankruptcy, all payments to insiders (management) within the last year can be recovered. In Bankruptcy, the company is protected by an automatic stay. In Bankruptcy, a trustee can be appointed to investigate corruption and graft. Virtually none of these things will occur outside bankruptcy -- which is why this bailout is doomed to failure -- just like the others. This is a bailout for the UAW. Let's not kid ourselves.