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.
That change in the bankruptcy law requires Congressional approval.
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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He would like a fully-fledged international bankruptcy framework, modelled on chapter 11 of the American bankruptcy law.
The explanation lies in a change in the American bankruptcy law in October 2005, which made going bust less attractive for borrowers.
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.
But the Chapter 9 bankruptcy case also is being closely watched nationally for the potential precedent-setting implications: whether federal bankruptcy law trumps the California law that says debts to the state pension fund must be honored.
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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The new Italian bankruptcy law rushed through Parliament on December 23rd has not mollified these concerns.
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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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.
Knowing financial markets might tumble on the news, the Senate reassured them by approving a much-needed new bankruptcy law on the same day as the minimum-wage vote.
Even before the new law, bankruptcy rates have been rising, fuelled by a rapid rise in consumer debt, especially credit card borrowing and personal loans, which have reached record levels.
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.
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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Like America's bankruptcy code, the new law aims to give companies a chance to trade on, sort their problems out, preserve jobs and even help capitalists get some money back.
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.
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.
That's the amount Zabel all but concedes Picard has the right to collect under New York State and federal bankruptcy law clawbacks, because it is what Picower took out in the six-year period prior to Picard's suit.
It was the aftermath of this law that led to the court judgment sparking NHF's bankruptcy filing.
Indonesia, beset by violence and economic collapse, has many other troubles, but the courts' mishandling of a new bankruptcy law has made matters worse.
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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Urbi is considering a filing under Mexico's bankruptcy law, some people familiar with the situation said.
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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.
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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"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.
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.
"You really want to look into the swimming pool to see if there is water in there before you dive in, " said James Spiotto, a municipal bankruptcy expert at the Chicago-based Chapman and Cutler law firm.
Because of loopholes in the law, healthy companies risk being taken over through bankruptcy.
Things should be better in the Philippines, where there is a bankruptcy statute based on American law.
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