Media is agog with the reports that Mr. Donald Trump, the U.s. President 2017-21, the Uncrowned King of this Unipolar World, is on a fencing spree with the World Media. It appears that White House Media Briefers want only off-camera (without cameras focusing on them) gaggles with the "Media of their Choice". In course of time, it appears as though they may stop, even this ritualistic Weekly Media Briefings and distributing Hand-outs. Mr. Donald Trump seems to fantasize himself as Lifetime Autocratic Ruler of United States, and wants to be seen as paternalistic benevolent bestower of gifts and concessions to the Nation, rather than as the 1st among the Top Administrators of United States who make respectable laws, respect existing laws, giving small concessions as "audi alterim partem (hear the other party)" , with belief in "Rule of Law", instead of a "Rule of Whims and Fancies".
An Excellent Report dated 16th Feb. 2016 by Kevin D Williamson at NationalReview.com
Here is a link to a report dated 16th Feb. 2016 by Kevin D. Williamson, at NationalReview.com, which presents the harsh realities of Trump's businesses: Click here to go to http://www.nationalreview.com/article/431420/donald-trumps-2016-debate-lies-he-went-bankrupt, and study the BUsiness Management Strategies of Mr. Donald Trump..
Even assuming that American Media is 'bourgeoisie' and consists of 'liers', and even if we discount 50% of what they report as utter lies, we cannot ignore the remaining 50%. What NationalReview writes, here is a quote, which is interesting:
"...Trump has a peculiar way of speaking about bankruptcy: He has a deep aversion to the word itself. He speaks of “putting a company into a chapter” without ever answering the implicit question: “Chapter of what? Moby-Dick?” The answer, of course, is the U.S. Bankruptcy Code, to which Trump has taken recourse at least four times over the course of his business career. The chapter in question is the famous Chapter 11, which applies to business bankruptcies. Trump proudly insists that he never has had recourse to Chapter 13, the personal bankruptcy code. This is his apparent justification for saying that he’s never been bankrupt. But of course one of the purposes of Chapter 11 bankruptcy is to keep men such as Donald Trump out of Chapter 13 bankruptcy. ..."
How Chapter 11 Bankruptcy Code of USA works
For the benefit of our readers who are not conversant with American Bankruptcy Codes (a sort of Insolvency Laws), I reproduce below from the link Click here to go to USCourts.gov an American Government Website, and study American Bankruptcy Laws: http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics.
A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.
An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court. How Chapter 11 Works
A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition must adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). If the debtor is an individual (or husband and wife), there are additional document filing requirements. Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.11 U.S.C. § 521. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). (The Official Forms are not available from the court, but may be purchased at legal stationery stores or downloaded from the Internet at www.uscourts.gov/bkforms/index.html.)
'American Bankruptcies' IS A 1000 PAGE SUBJECT
In the NationalReview.com quote above "The answer, of course, is the U.S. Bankruptcy Code, to which Trump has taken recourse at least four times over the course of his business career.", it may be found that Mr. Trump has had recourseto the US Bankruptcy Code Chapter 11, AT LEAST FOUR TIMES.For the benefit of Global Readers who may not be familiar with Indian Bankruptcy Laws, and for the benefit of Indian Readers who may not be familiar with both the American and Indian Bankruptcy Laws, I write below a few comparisons:--
India has enacted an Insolvency and Bankruptcy Code 2016, and parts of it have been notified for some clauses and some institutions coming into operation. Those Readers who are interested to study the present status of enforcement of this Legislation, can have a look at this link: Click to go to http://www.mondaq.com/india/x/568306/Insolvency+Bankruptcy/Cracking+The+Insovency+Bankruptcy+Code+2016.
Some temporary and tentative observations of yb-a-donkey
As the above Act has not yet been effectively, fully tried, for the time being we can have look at the existing situation:
PERSONAL INSOLVENCIES
For insolvencies of individuals, there used to be a Provincial Towns Insolvency Act and, a Presidential Towns Insolvency Act, depending on the Town/City where the Insolvent is situated. Of course, Applications for insolvencies can be made by individual insolvent person, or his Creditors, in an appropraite Court. After due inquiries, Courts appoint Official Receivers/Assignees (usually lawyers) to conduct the Insolvency Proceedings-- i.e. sell all the assets of the insolvent + collect all dues receivable by insolvent from his debtor, -- repay all the Creditors either fully/or preportionaly depending on sufficiency of funds, and the preferences/priorities allowed by Insolvency Law, -- and if any surplus is left, pay the Insolvent. Personal Insolvency Proceedings tend to be lengthy affairs. A tendency is developing on the part of Creditors to approach goons to exert physical pressure on debtors to recover their dues.
CORPORATE INSOLVENCIES
The phrase "Reorganisation Bankruptcy" used in the above American Law is not use in India in the context of Insolvencis of Companies. Companies, when they find that their Balance Sheets are too dark, with few tangible assets, and lot of liabilities, may go for RECONSTRUCTION PROCESS involving Reduction of Capital. This is mainly a Company-Law affair, involving Share-holders of the Company. Primarily, "Reconstruction" is not Bankruptcy.
Appropriate Process for Liquidating a Company, to sell its assets, collect dues from debtors, and pay to Creditors as per preferences/priorities, is through filing of an Application in a High Court. The Application can be filed by either the Companies (Companies have artificial personalities, and are entities different from their promoters, directors, and shareholders), or their Creditors. Courts after satisfying themselves that Liquidation of the Company is the Solution, will appoint Official Liquidators.
CURRENT TRENDS seem to be
Companies incurring losses, gradually become non-performing, dormant, and finally defunct. Sometimes, defunct Companies may continue to be listed in Indian Stock Exchanges. Sometimes, Stock Exchanges may delist defunct/dormant Companies for non-payment of Listing Fees, Non-Submission of Financial Statements etc. Banks go to Debt Recovery Tribunals which are Special Courts for recovery of Large Dues of Banks. Sometimes they may resort to direct sale of assets, under a Special Empowering act called Securitisation and Reconstruction of Financial. Assets and Enforcement of Security Interest Act, 2002.
To continue adding / deleting / modifying. सशेष. ఇంకా ఉంది.
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ఘోరమైన విమర్శలకు కూడ స్వాగతం, జవాబులు ఇవ్వబడతాయి. Harsh Criticism is also welcome.