Chrysler Bankruptcy - President Obama's thoughts on Chapter 11 Bankruptcy
The Chrysler Chapter 11 bankruptcy has attracted a fair amount of attention on both sides of the Atlantic (e.g. New York Times, BBC, USA Today). Some of President Obama's comments regarding the purpose of the Chapter 11 procedure are particularly noteworthy. The President noted:
"No one should be confused about what a bankruptcy process means...This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler's revival."
President Obama was of course a law professor at the University of Chicago Law School prior to his foray into politics. He has links to the subject of bankruptcy as his recruiter at Chicago was Professor Douglas Baird, a leading American bankruptcy scholar.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...