Lie Weighs in on General Motors

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Erik Lie, a finance professor in the Tippie College of Business, weighed in on whether a quick exit from bankruptcy is in General Motors' best interest. His recent study suggests the bankruptcy filing by General Motors will be of little help to the company's long-term prospects. In a study of 172 companies that filed for bankruptcy between 1990 and 2003, Lie found that companies that enter bankruptcy emerge too soon and still have too much debt.