Kevin Delaney's book, STRATEGIC BANKRUPTCY (California Press, 1992),
examines the corporate use of Ch 11 bankruptcy in breaking union contracts
(Continental Airlines) and evading financial claims from lawsuits such as
Manville (asbestos). It was Frank Lorenzo that utilized his Harvard
B-school weekend training to creatively exploit Ch 11 bankruptcy for
abrogating the Continental union contracts. Also, Delaney shows that these
corporate bankruptcies were timed when their assets and liquidity did not
demonstrate financial hardship.
bob manning
Univ of Houston
[EMAIL PROTECTED]
>From: Michael Perelman <[EMAIL PROTECTED]>
>Reply-To: [EMAIL PROTECTED]
>To: [EMAIL PROTECTED]
>Subject: [PEN-L:10072] Re: bankruptcy again
>Date: Tue, 10 Apr 2001 10:20:18 -0700
>
>In my earlier post, I used the term strategic bankruptcy in discussing the
>use of bankruptcy to avoid obligations -- even when the firm would be able
>to survive the obligations that it is attempting to avoid. Would Grace
>really be unable to pay the suits?
>
>David, I don't pretend to know a great deal about bankruptcy, but would
>the shareholders of Grace or of PG&E be left with nothing under
>bankruptcy. If not, I would regard the bankruptcy as strategic rather
>than economic.
>
>We have been trying to give you information about the left. Maybe you
>could offer us a thumbnail course in the intricacies of bankruptcy.
>
>Doug Henwood wrote:
>
> > michael perelman wrote:
> >
> > >Earlier, David said that firms do not engage in strategic bankruptcy.
> > >
> > >What about W.R. Grace?
> >
> > I missed David's claim, but there was a book called Strategic
> > Bankruptcy that came out in the late 1980s. Did that come up, or did
> > I miss that too?
> >
> > Doug
>
>--
>
>Michael Perelman
>Economics Department
>California State University
>[EMAIL PROTECTED]
>Chico, CA 95929
>530-898-5321
>fax 530-898-5901
>
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