We should not, however, pop the champagne just yet. These companies are still extremely fragile. Bankruptcy may save them — but only if the operations are performed correctly. Plenty can still go disastrously wrong.
One problem is speed. President Obama has promised that both the Chrysler and GM bankruptcies will be quick, which seems likely. Yet those who study bankruptcy know that going through it hastily may simply result in a second or, as in the case of some airlines, a third bankruptcy. Just because a reorganization is fast does not mean it is successful. Repeat trips to the operating table are rarely good.
For the full article from the National Law Journal click here.