But, as someone close to Mr Bondi put it, what use to creditors is a bunch of yachts with crews who have not been paid for months?For all his public tears, Mr Tanzi has been unco-operative with magistrates and Mr Bondi.
In a conference call, Dr. Krueger countered that such provisions would be "awkward instruments to use across creditor claims of different bond classes," as well as for debts of other types, like bank loans.
This could, if used properly, reduce to tolerable levels the spillovers that would result from the imposition of creditor losses.
Instead of the easy course of bankruptcy, he resolved to pay his creditors by the use of his pen.
"By approving the use of donor-advised funds to pay creditors, the court concluded that they were assets of the bankruptcy estate," said Kenneth M. Misken, a lawyer with McGuireWoods in McLean, Va., who represents the seven-member creditors' committee that negotiated the plan.
Dozens of creditor banks also filed suits against AHAB.
Since 2003 seven additional states have allowed the use of asset protection trusts to shield money from some creditors.
Scandals surrounding the (mis)use of metal as collateral at Qingdao port will frighten off foreign creditors, and stockbuilding and financial demand there will dwindle.
The principal Republican objections have been leveled at three major elements of the bill: the liquidation fund, treatment of creditors and using the F.D.I.C. to handle the winding down of such a company.
Their use of short-term debt can be constrained so that they can survive runs by uninsured short-term creditors.
