The harsh reality is that in many cases, liquidation preferences are a necessary evil.
He said the 2005 law that established the loan program that said that in case of liquidation, the government "shall be" first in line.
Joe Barton of Texas praised Dr. Chu's integrity but asked about a decision that Dr. Chu approved, to allow Solyndra to restructure its loan and take in new money, putting the government second in line for reimbursement in case of liquidation.
Page A10 HOUSE PANEL EXAMINES DEAL The Energy Department may have made a decision without precedent when it allowed Solyndra, the solar technology company, to restructure its loans so private investors -- not the government -- would have first call on its assets in case of liquidation, two Treasury Department officials acknowledged.
WASHINGTON — The Energy Department may have made a decision without precedent when it allowed Solyndra, the now bankrupt solar technology company, to restructure its loans so private investors — not the government — would have first call on its assets in case of liquidation, two Treasury Department officials acknowledged Friday before a House subcommittee.
No other airline has terminated all its pension plans, except in cases of liquidation, where the airline itself was going out of existence.
One is on the question of how the government gave away its place as first creditor in line in case of a liquidation.
The basic idea is simple: big financial companies have to submit plans that explain how they would structure a future bankruptcy case or orderly liquidation authority proceeding if they were failing.
Shareholders of Napster Inc., the Internet music-swapping site whose proposed sale to Bertelsmann was rejected, have until Friday to elect a board to avoid a liquidation case, a judge ruled.
Court papers show that United States Bankruptcy Judge Raymond B. Ray in Fort Lauderdale, Fla., changed Kosar's bankruptcy case to a liquidation, or Chapter 7. The order, issued Wednesday, says a court-appointed trustee will sell Kosar's assets and distribute the proceeds to his creditors.
