"It’s a procedure to reorganize. A smaller GM is going to emerge and be more profitable,” says Professor Juliet M. Moringiello
of the recent news of the General Motors bankruptcy filing, adding, “Under the protection of the bankruptcy courts, they get to do it more quickly.” Given her interest and expertise in bankruptcy law, several news outlets have contacted her for her take on the situation.
Maureen Milford of the News Journal spoke to Professor Moringiello to get her thoughts on the General Motors bankruptcy for an article that appeared in USA Today
entitled “How will GM’s bankruptcy affect economy?”
An extended version of that story, “State’s economy will feel shock, but decline has been ongoing,”
appeared in the Wilmington News Journal
on June 2nd. Professor Moringiello also spoke about the bankruptcy during an evening broadcast on WDEL 1150 AM on June 1st.
Emphasizing that bankruptcy would “not be a magic wand,” but rather “an opportunity to reorganize,” Professor Moringiello stressed that “Filing for bankruptcy is not what makes a company fail. They file for bankruptcy because they are failing.” She noted that part of what made the General Motors bankruptcy so interesting was the complexity of the negotiations, saying, “The idea is that a lot of the negotiations took place before the filing. The filing is really to seal the deal.”
Addressing the closing of Delaware’s General Motors Boxwood Road plant, Professor Moringiello emphasized that the plant might well have been closed regardless of whether or not General Motors filed for bankruptcy, saying of plant closings, “Those could happen either way because the company can’t meet its obligations. Bankruptcy simply allows it to deal with all of those issues in one place.” She also addressed negotiations with the United Auto Workers union, stating, “It would be hard for the car companies to emerge from the bankruptcy without the support of the unions.”