Barry Adler critiques automaker bailouts in testimony before Congressional Oversight Panel

Barry Adler, Bernard Petrie Professor of Law and Business, gave testimony before the Congressional Oversight Panel's hearing on assistance to the automobile industry under the Troubled Asset Relief Program (TARP). During his July 27 appearance, Adler criticized the government's role in the Chrysler and General Motors cases as well as the judicial determination that the process was legitimate. He argued that although government largesse in these cases may have been sufficient to pay each creditor its due, the manner in which the government quieted dissent created a precedent that could lead to violations of contractual rights among creditors in future cases. The result, he said, could be an increased cost of capital to corporate borrowers generally.

Read Barry Adler's complete statement

Watch the video recording of the hearing



Barry Adler writes in BusinessWeek op-ed that Chapter 11 is not the answer for troubled U.S. automakers

Read about Adler's testimony before Congress on Chapter 11 bankruptcy in September 2008

Posted on September 21, 2009