Bankruptcy

GM decides speed is better

By Stephen Lubben

GM has decided not to fight the §363(f) issue and will not attempt to "cleanse" its assets of tort claims when transfered to "New GM." I have previously argued that §363(f) should be read to apply to tort claims, subject to the overriding limits of due process that would temper 363(f) as applied to future claims. (Unless somebody wants to argue that Katz overcomes other Amendments too -- as explained by the majority, the Bankruptcy Clause does appear more powerful than previously understood).

Full post as published by Credit Slips on June 27, 2009 (boomark / email).