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GM judge experienced with landmark cases
NEW YORK |
NEW YORK (Reuters) - Two years ago, federal bankruptcy judge Robert Gerber described the Adelphia case he had overseen as "among the most challenging and contentious in bankruptcy history."
But that might turn out to be just a dress rehearsal for the bankruptcy of iconic U.S. automaker General Motors Corp, to which he was assigned on Monday.
Gerber's experience with such landmark bankruptcy cases as Adelphia Communications, a cable television operator, and telecommunications company Global Crossing Ltd, both filed in 2002, have equipped him to handle what is now the third-largest U.S. bankruptcy case ever, bankruptcy experts said.
"He has experience dealing with cases of this magnitude, with issues of major economic, as well as legal importance," said Richard Mikels, a partner with law firm Mintz Levin.
Gerber himself wrote in his 2007 Adelphia decision, which ended a four-and-a-half year bankruptcy, that he strived to reach a deal that had "overwhelming support" after previous iterations left "nearly everyone extremely unhappy."
The U.S. government's ambitious plan for GM is for a quick sale that would allow a much smaller company to emerge from court protection in as little as 60 to 90 days, and whose new stakeholders will include the U.S. and Canadian governments.
Gerber was appointed to federal bankruptcy court in Manhattan in 2000, following a 22-year stint as a partner in the securities and bankruptcy litigation department at Fried, Frank, Harris, Shriver & Jacobson.
With the U.S. government forecasting GM will emerge from bankruptcy protection by August, Gerber will be working long hours, but is not likely to cut any corners in reaching his decisions.
"He's exceptionally hard working, has a high intellect and is an excellent judge. He will give the public interest his highest priority and it will move really fast," said Martin Bienenstock, a bankruptcy attorney at law firm Dewey & LeBoeuf LLP.
One lawyer, who declined to be identified because he has appeared before Gerber and is likely to again, described him as "fair," giving each party time to be heard, and reading all documents submitted to him.
That style was on display in February when he took three days to approve chemicals maker Lyondell Chemical Co's $8 billion bankruptcy funding, at the time the largest ever such loan, an unusually long stretch for what is often a routine matter.
Still that case showed Gerber's no-nonsense side as well.
"Lenders, if you don't like it, you can give me a new facility," Gerber told objecting creditors during hearings.
Gerber received a bachelor's degree from Rutgers University in New Jersey in 1967 and his law degree from Columbia University in 1970. He also served in the U.S. Air Force in the early 1970s.
Other cases Gerber has handled include that of consultancy BearingPoint Inc, which recently sold large portions of its assets to accounting firms PricewaterhouseCoopers and Deloitte.
One expert said Gerber's willingness to deliberate would enhance his handling of the case.
"In many cases, a judge shows efficiency and knows the process -- but this situation will require judgment," said Sheon Karol, a partner with restructuring firm CRG Partners, calling GM a "historic" case.
The case is in Re: General Motors Corp, U.S. Bankruptcy Court, Southern District of New York, No. 09-50026.
(Reporting by Phil Wahba, additional reporting by Chelsea Emery; Editing by Andre Grenon)
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