The federal government's actions in the bankruptcies of Chrysler LLC and General Motors Co. could have far-reaching implications for dealmaking. So says Peter Kaufman, president and head of restructuring and distressed M&A for Gordian Group LLC. According to Kaufman, a core tenet of bankruptcy is that there is "equitable sharing of the pain among the constituencies. Here I think you're going to find a compelling argument that there's been an inequitable sharing of the pain among the unsecured creditors." And that, says Kaufman, could make lenders think twice about providing capital to companies that could be a target of government involvement.
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- Suzanne Stevens
