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View Diary: Same BS, different day: Mitt Romney still not admitting he was wrong on Detroit (95 comments)

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  •  What Managed Bankruptcy Means to Mitt (0+ / 0-)

    "Managed bankruptcy" is the vocabulary of a vulture capitalist.  To them managed bankruptcy means "strip it and flip it."  Pare down a financially distressed company to its bare essentials, fire all the employees, reject all the pension contracts, flame all the creditors, destroy the value of any "old" equity and then sell off any hard assets and intellectual property rights with market value to the highest bidder in a highly controlled sale under section 363 of the Bankruptcy Code.  This happens every day in Bankruptcy courts all over the country and it is what Bain does to make money, usually after getting control of the assets under foreclosure conditions.  Most people don't really understand what Romney is saying when he uses the term but folks who work in Bankruptcy know exactly what he means.

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