S&P Warns Against Chapter 11 Manipulation

Law360, New York (March 17, 2006, 12:00 AM EST) -- Facing tough economic conditions and daunting legacy costs, more and more auto suppliers may choose bankruptcy as a strategic means of escape, cautioned ratings agency Standard & Poor's.

In a report released on Friday, S & P expressed concern that suppliers would view bankruptcy as a tactical move rather than as a last resort as it is intended.

“Bankruptcy has some strategic attention for certain participants in the challenged U.S. auto supply sector, as it could allow suppliers to effectively reduce all manner of costs as...
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