The answer to my question -- Why doesn't bankruptcy mean shareholders eat the losses they so richly deserve? -- is perhaps already given in this paragraph from an article in today's NYT:
<quote>
A few months ago, in a move widely criticized by consumer groups and
legislators, the PG&E Corporation took steps to ensure that the assets
of its other subsidiaries would not be seized in case of a Pacific Gas
bankruptcy. Just this week the State Public Utilities Commission said
it would investigate whether Pacific Gas and Electric, Southern
California Edison and the state's No. 3 investor-owned utility, San
Diego Gas and Electric, had engaged in any financial misconduct by
funneling billions to their parent companies to pay dividends and
repurchase stock.
<endquote>
Full article at http://www.nytimes.com/2001/04/07/business/07ENER.html
Michael
__________________________________________________________________________ Michael Pollak................New York City..............mpollak at panix.com