The Tories: Between a (Northern) Rock and a hard place
The basic reason that Northern Rock has to be nationalised is that otherwise the government has no control and has to pick up the tab. The worst financial position for the tax payer.
The tories have without thinking through the end game decided against Nationalisation.
First they talked about Administration. This is a fire sale guaranteed to lose the government the most money.
They are now talking about Chapter 11. Actually this raises an interesting question about insolvency procedures. I think we do need to review the law in the UK. However, Chapter 11 puts the creditors (the tax payers) in a weak situation and although it is not a Fire Sale there is some smoke in the corner that requires rapid action. Hence this is a better bet (although we don't have the law in this country for this) than administration, but only slightly better.
Hence they are in a position between Nationalising Northern Rock and the Hard Place of the Taxpayer being out of control and losing billions.
I don't think this will do their economic credibility any good.