Detroit Could Mean Little for Creditors
Aug. 2 (Bloomberg) -- How Detroit is dramatically different from any other municipal bankruptcy is the first topic of discussion on the video with Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle. After pointing out snags AMR Corp. might encounter at this month's confirmation hearing to merge with US Airways Group Inc., Pacchia and Rochelle interview Lewis Kruger, the chief restructuring officer for Residential Capital LLC.
The video ends with discussion of two important opinions from the courts of appeal in Philadelphia and San Francisco. One gives bankruptcy judges the green light to tell other courts how their rulings should be interpreted. The other creates a split among the appeals courts by laying down a different standard for imposing the doctrine of judicial estoppel that's often used to bar bankrupt individuals from pursuing lawsuits.