The U.S. Justice Department is at odds with many companies in bankruptcy court, the Wall Street Journal reports. Companies seeking Chapter 11 protection are subject to “murky” laws regarding court venues and executive bonuses, but the director of the Justice Department’s U.S. Trustee Program, Clifford White III, is determined to keep the bankruptcy system upright.
Critics say inflexible policies can be out of touch with reality and do not act in the best interest of the companies seeking protection. Such policies can also slow down restructuring. However, White has indicated that strict enforcement of bankruptcy law is necessary to restore public confidence in the system.