Bailout Watch 257: Chrysler Hires Bankruptcy Counsel

bailout watch 257 chrysler hires bankruptcy counsel

Chrysler has been battered in the last two days of congressional hearings. If there’s one thing that everyone in congress seems to agree on, it’s that Chrysler isn’t worth the hassle. Not only is it the smallest of the three automakers, but the Cerberus issue has loomed large as well. Today alone Nardelli told representatives at least twice that as far as he was aware, Cerberus didn’t have the funds to revitalize Chrysler. Needless to say this didn’t go over particularly well (private equity is deliciously easy to demonize), and Nardelli was looking increasingly stressed as the hearings dragged on. Probably aware that it’s about to become a sacrificial lamb (or, in a last-ditch sympathy ploy), Chrysler has reportedly hired law firm Jones Day as bankruptcy counsel, according to the Wall Street Journal. Neither side has confirmed or denied the move, but since the WSJ is quoting “people familiar with the matter” it must be true. Corinne Ball, who previously worked on the Dana Corp reorganization, GM’s Daewoo acquisition and “many cases involving the United Auto Workers union,” is said to be handling the case.

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  • Ryan Ryan on Dec 06, 2008

    Crapsler will not be missed.

  • Windswords Windswords on Dec 06, 2008

    RedStapler, Jeep already has good diesels, they export them out of the port in Baltimore. You just can't buy them here. Something about our laws won't let them be sold here. They "pollute" too much. But Europeans don't think so. They get 30 something miles to the gallon in them. Maybe Americans are stupid. Ryan, We are relieved that you won't be put out by Chrysler's demise. I can sleep better at night.

  • Ryan Ryan on Dec 07, 2008

    windswords, Glad I could help ease your mind. Don't worry too much, we will bail out Crapsler AGAIN.

  • Justcauz Justcauz on Dec 07, 2008

    I can see Chrysler going by the wayside as the US Govt uses many GM vehicles. whereas it appears State and Local Govt, and many heavy duty fleets use Ford. Rarely do you see Chrysler being utilized.

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