From Publishers Weekly
Once a stigma, bankruptcy, according to this searing account, is today a popular device used by troubled corporations to shield themselves from tax and interest payments, supplier debt, insurance claims, labor agreements, pension obligations and corporate accountability in general. Kallen, former chairman of the Chicago Bar Association's bankruptcy panel, calls bankruptcy reorganization a "huge hidden welfare program" that fattens the kitty for management. Citing the compliance of federal bankruptcy judges in a process that leads to years of obstructionist "union-busting" and claim-dodging, Kallen predicts that without unlikely action by Congress, large corporations plagued by junk-bond debacles, pollution suits and other woes will clog bankruptcy courts through the decade.
Copyright 1991 Reed Business Information, Inc.
Copyright 1991 Reed Business Information, Inc.
From Library Journal
Prior to 1978, bankruptcy legislation historically recognized the right of creditors to reclaim assets from insolvent debtors. Kallen, author of How To Get Rich Buying Bankrupt Companies (Carol Pub. Group, 1989), claims that this relationship was reversed by the creation of the federal Bankruptcy Reform Act of 1978. That act gave corporations the ability to shelter assets from creditors by using the excuse of insolvency. The author cites numerous examples of large corporations that have obtained immunity from creditors' claims under Chapter 11 of the bankruptcy code. He makes the point that the public well-being has not been served by this relatively new legislation. Corporate Welfare is an interesting study for academic collections.
- Joseph Barth, U.S. Military Acad. Lib., West Point, N.Y.
Copyright 1991 Reed Business Information, Inc.
- Joseph Barth, U.S. Military Acad. Lib., West Point, N.Y.
Copyright 1991 Reed Business Information, Inc.
