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Delphi sought protection in Chapter 11 in part to avoid replacing the lost money.
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"All the protections for creditors in Chapter 11 are not applicable in Chapter 9," said Laura Bartell, a law professor at Wayne State University in Detroit.
Before G.M. sought bankruptcy protection, its former chief executive, Rick Wagoner, warned repeatedly that buyers would be reluctant to buy cars from a company in Chapter 11 protection.
In an 80-page opinion issued yesterday, United States Bankruptcy Court Judge Judith Wizmur favored Mr. Icahn's plan to invest $65 million in cash in the struggling casino, which filed for protection under Chapter 11 in January 1998.
The plan foresees CIT in Chapter 11 protection for 30 to 45 days.
Another borrower in Chapter 13 protection, Len Irvine of Belvedere, tells a similar story.
M.G.M. instead struck agreements with a number of creditors that allowed the company to file for a prepackaged bankruptcy, which shortened its stay in Chapter 11 protection.
Now that it is in Chapter 11 protection, Arcapita is hoping to use American bankruptcy laws to complete the restructuring of its debt.
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