Media economic propaganda: Reuters calls corporate lawyers opposed to bankruptcy reform "experts"

[brentspeak]

Unlike the bankruptcy "reform" atrocity signed into law by Bush in 2005, this particular bankruptcy reform effort is supported by labor, who have seen corporations abuse bankruptcy procedure as an end-around to cut employees' salaries and benefits.

http://www.reuters.com/article/idUSN2415131020100325?type=marketsNews

US labor seeks bankruptcy reform, exec pay curbs

* Experts say changes may lead to more liquidations

By Tom Hals and John Parry

WILMINGTON, Del./NEW YORK, March 25 (Reuters) -

snip

Congress is considering a bill backed by unions that proposes to raise the limit on wage claims in bankruptcy, make it harder to change collective bargaining agreements, and limit the ability of companies to shed retiree benefits.

The bill also proposes what one critic called nearly "impossible to satisfy" restrictions on bonus and incentive payments for executives of bankrupt companies.

snip

"This would essentially make it impossible for companies to pay any sort of incentive or bonus compensation to its senior employees," Michael Bernstein, an attorney and partner with the law firm Arnold & Porter LLP, said in an email.

snip

Marshall Huebner, co-head of the restructuring group at the law firm Davis Polk & Wardwell LLP, said some proposals in the bill could severely limit a troubled company's flexibility to achieve cost savings or financing, and could potentially pile on new costs.

[FBaggins]

1. You can be biased and still be an expert.

The change might very well lead to an increase in liquidations. That doesn't necessarily mean that it's the wrong decision.

[pscot]

2. It would be a shame if Congress made it harder

for bankrupt businesses to hand out large sums of cash to company officers before the workers got a share. Sounds unamerikan to me.