Bankruptcy Law
Biden Fought to Preserve Delaware as Corporate Bankruptcy Forum
Posted Aug 27, 2008, 07:39 am CDT
By Debra Cassens Weiss
Democratic vice presidential nominee Joe Biden opposed a bill that would have cut down on the number of corporate bankruptcies filed in his home state of Delaware.
Biden says companies like the efficiencies of having an experienced court handle their complicated bankruptcies, but critics point out that the senator’s stance has benefited Delaware law firms, the Wall Street Journal reports.
Delaware handles 52 percent of large public-company bankruptcy filings, according to law professor Lynn LoPucki of the University of California, Los Angeles.
A bill introduced in 2005 would have repealed the law that allows companies to file for bankruptcy where they are incorporated. Many companies incorporate in Delaware because of favorable tax laws. The bill went nowhere after Biden vowed to fight it.
Since 2002 Biden has received more than $1 million in campaign contributions from law firms with Delaware offices, the story says.
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