REUTERS For Sale: Solyndra's Ergonomic Chairs | The bankrupt solar company Solyndra, which itself is for sale, is this week auctioning off assets, including electron microscopes, walk-in ovens, laptop computers, copper wiring, exotic manufacturing tools and Herman Miller chairs, The New York Times reports.
Specifically, it is due to government's unwillingness to do what needs to be done: to remove the smokescreen that is suffocating the financial markets, open the books of the insolvent mega banks, declare them bankrupt, as they actually are, auction off their assets, and bring them under public ownership -- since taxpayers have already paid for their net assets many times over.
This hit-squad will be armed with rules allowing it to close unprofitable firms and auction off their assets.
Though CMBS loan delinquency rates continue to rise, debt-holders have so far preferred to restructure faltering loans rather than foreclose or auction off the assets.
These include doing searches for titles of a borrower's assets, putting liens on those assets, taking the borrower to court, and auctioning off certain assets.
But many Latin Americans, frustrated by rising poverty and stagnant economies, say auctioning off government assets benefits only a few.
For now, the government is blocked from auctioning off Clarín assets, which it said it would do if the company had not submitted a plan for divestment by midnight Friday.
President Cardoso has set himself the task of undoing an overbearing state bureaucracy by auctioning off Government assets in the telecommunications, petroleum, electricity and mining industries, and by privatizing railroads, highways and the country's port system.
Soon bankruptcy courts may be auctioning off their assets.
