by KYW's John Ostapkovich
Bankruptcy courts in Delaware are very busy these days, sometimes with high-profile corporate cases. But why there?
The answer is twofold, says Sheldon Pollack, a University of Delaware professor of law and business studies.
First, Delaware encourages corporations to set up there, which brings in tax revenue. Second, the courts and Wilmington's legal profession gained a reputation for dealing with corporate reorganization cases -- "Chapter 11s" -- quickly, efficiently, and favorably to the company.
This, says Pollack, has been a growth industry:
"In 1990, Delaware (Chapter 11) filings, out of all Chapter 11s across the country, were less than one-half of a percent. And now they're about 11 percent. So there's definitely has been a reorientation toward Wilmington's bankruptcy court."
Professor Pollack notes that late last year the Tribune Company, owning major papers in LA and Chicago as well as the Chicago Cubs, filed for Chapter 11 in Wilmington.
(File photo: Del. Chancery Court in Wilmington)
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