Peter Kaufman cited on GM in USA Today, “Plan to Save Automaker has Risks for Economy”

The way the government has gotten involved in GM and Chrysler could have a chilling effect on investments, says Peter Kaufman, president of Gordian Group’s restructuring practice. The government helped negotiate a deal that got union workers a 17.5% stake in the restructured GM and bondholders a 10% stake in the company; that runs counter to bankruptcy laws, which would have treated both parties equally.

Bankruptcy laws make investments in U.S. companies seem relatively safe, Kaufman says. “Now, if you’re going to be a lender here, you can no longer be certain of anything,” he says.

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