But a new obstacle has arisen: Congress has approved two bills whose effect is to reverse the recent repeal of a bankruptcy law which favoured debtors at the expense of banks.
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The terms of the GM bankruptcy gave us insight to how that can be accomplished, and only the Feds are powerful enough to bend the bankruptcy law so severely, much as the transactions of the GM bankruptcy could not be accomplished without heavy-handed Federal influence.
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As U.S. equity markets and corporate balance sheets continue their remarkable comeback from the financial crisis that began in 2008, the recently announced merger between American Airlines and US Airways reminds us of the critical role that U.S. bankruptcy law, represented by Chapter 11 of the U.S. Bankruptcy Code, has played in the ongoing economic recovery.
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Its exact form is not yet clear, but it seems likely that legislation will be approved later this year, against approving background noise from politicians lamenting the moral decline that has led to widespread abuse of the old bankruptcy law.
He would like a fully-fledged international bankruptcy framework, modelled on chapter 11 of the American bankruptcy law.
Representative TED STRICKLAND (Democrat, Ohio): This is another example of where the workers basically are given the short end of the stick and the company uses a bankruptcy law in order to avoid their commitments and their obligations.
Partly as a result, Beijing is now putting the finishing touches to a new bankruptcy law which vastly increases the rights of creditors and clarifies the procedure.
The 2005 law, a set of amendments to bankruptcy law passed in 1978, was precipitated by a concern among lawmakers that the bankruptcy system was too lenient and was being abused, observers say.
It was the aftermath of this law that led to the court judgment sparking NHF's bankruptcy filing.
Using the bankruptcy law to threaten rejection of its labor contracts, United forced the unions in 2003 to accept large cuts in wages and benefits.
Citing an exception to U.S. law which favors honoring the bankruptcy proceedings of other nations, Judge Hale said it would violate public policy to allow Vitro to walk away from the guarantees backing its debt.
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"Not only should we not eliminate the word 'lunatic' from federal law when the most pressing issue of the day is saving our country from bankruptcy, " said Rep Gohmert in a statement.
Indonesia, beset by violence and economic collapse, has many other troubles, but the courts' mishandling of a new bankruptcy law has made matters worse.
Dewey will have to negotiate with landlords who could at some point move to seize office equipment in lieu of rent payments unless the law firm seeks bankruptcy protection, this person said.
If the government treated the UAW in the manner required by bankruptcy law, it could have given the stock and promissory notes to the Treasury instead of to the UAW. Labor cost savings and not supporting Delphi pensions would have increased the value of the taxpayers' shares of GM, while GM would have needed less financing.
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Katherine Porter, a law professor at the University of Iowa, said many experts, bankruptcy lawyers and judges she has spoken to expect the number of filings to return to previous levels.
Under current law, while municipalities are permitted the bankruptcy option through Chapter 9 of the U.S. Bankruptcy Code, there is no provision whereby a state can voluntarily opt to put itself into bankruptcy.
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Because of loopholes in the law, healthy companies risk being taken over through bankruptcy.
There is also something distinctly fishy about the bankruptcy request, which, because of the way Russian law ranks creditors, seemed unlikely to yield much for the banks involved.
One case explores a first-year law school civil procedure issue, while another gets deeply into the weeds of bankruptcy jurisprudence, thanks to a three-decade estate battle involving the late Anna Nicole Smith.
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When working on the Lehman bankruptcy, I worked with folks from a range of law firms, and it was a great view into the differences in how people from firms are perceived by folks in other firms, although the differences are much more complex than reflected by the V100.
The law was finally passed seven years later, implementing a new set of guidelines for bankruptcy filings and safeguards to cut down on potential fraud and abuse.
The case is set to be a big test of China's new bankruptcy law, which came into effect in 2007 but has rarely been applied to overseas-listed companies with assets in China.
Congress could monkey with that scheme through bankruptcy law, however, something it has done repeatedly to protect the interest of other special creditors including student lenders and landlords.
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Important features of domestic bankruptcy law an impartial judge, protection from lawsuits, the ability to force restructuring terms on recalcitrant creditors do not exist for sovereign borrowers.
"Public safety is paramount, " said Bernstein, managing partner of the Banking, Bankruptcy and Creditors' Rights Practice Group for Michigan-based Plunkett Cooney law firm.
The elder Graham had inherited control of the Post Co. from his father-in-law, Eugene Meyer, who had acquired it out of bankruptcy in 1933.
Now some people question whether or not the state law like this would supersede a federal bankruptcy court and, you know, that's kind of a David versus Goliath situation.
Yet, according to a study by Elizabeth Warren of Harvard Law School, there is no evidence that most people who file for bankruptcy are taking advantage of the system.
He was chairman of the Kentucky Bar Association Bankruptcy Section in 2006-07 and has been a speaker on consumer law topics and foreclosure defense at numerous continuing legal education seminars in Kentucky and nationally at seminars and conferences sponsored by AARP, The National Consumer Law Center, and the National Association of Consumer Advocates.
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