Hey, it’s Tuesday,

U.S. Sen. Elizabeth Warren decided to go after companies choosing Delaware  and other out of town venues in bankruptcy cases.

“And that’s exactly why companies run away from home — to put as much distance as they can between themselves and their communities, and to raise the cost, and to limit the ability of employees, retirees and local suppliers to follow them 1,000 miles or clear across the country,” the Democrat from Massachusetts said.

Warren, who may be eyeing a run at the White House, was referring to the Boston Herald newspaper filing for bankruptcy protection in Delaware. Following the sale out of bankruptcy court, the new owner,  Digital First   slashed an already lean staff by more than 65.

Still, bankruptcy courts usually rule in favor of the highest bidder, since the overriding principle is to pay back creditors to the greatest extent possible. 

U.S. Bankruptcy Court in Wilmington has developed expertise in a number of industries. A couple that come to mind are newspapers and mid-sized restaurant chains.

Many companies that file for Chapter 11 are incorporated in Delaware and have a degree of comfort with the state’s corporate legal system.

Delaware gained a ton of newspaper experience in the difficult four-year-long Tribune Co. bankruptcy case, as well as the far speedier filings by Gatehouse and Lee Enterprises. 

By contrast, locally filed bankruptcies can be messy affairs that can present conflict of interest issues.

Delaware bankruptcy judges have been known to move cases out of the state if the location is a hardship.

One extreme example was Hawaiian Telcom, which filed in Delaware. The case was moved to Hawaii, the best site for the heavily regulated company.

In the case of the Herald, the hardship argument is weak, since Boston is not that far from Wilmington.

Whatever the case, the Herald has been a basket case for a while, due in part to previous owners being barred from owning TV stations in a two-newspaper market. That’s a story  for another day.

But as the legendary  Massachusetts  pol and House Speaker Tip O’Neill would say, all politics is local and Warren will earn some thumbs up in the Bay State for her views. 

Have a great Tuesday.  The daily newsletter will be back for hump day. – Doug Rainey, publisher.