Swirling Around The Drain

clipped from www.powerlineblog.com The long-running Delphi bankruptcy is now entangled with the saga of GM. This week the Delphi bankruptcy provided a useful contrast to the trampling of creditors' rights in the GM and Chrysyler restructuring. A bankruptcy judge with the Dickensian name of Robert Drain pricks the balloon sent up by the government in the Delphi bankruptcy: U.S. bankruptcy court Wednesday sided with a group of Delphi Corp. lenders who said a government-led plan to sell the auto-parts maker's operations to a private-equity fund trampled on their rights. Judge Robert Drain ordered Delphi to hold an auction and allow bids to challenge the government-brokered sale to Platinum Equity. "What's so special about Platinum?" asked Judge Drain. "They're just guys in suits. Why can't the other guys in suits just pay more?"