Chrysler bankruptcy lawyers reportedly ask to be paid up-front
As the bankruptcy plan now stands, the healthy portions of Chrysler will be cleaved off to Fiat, the U.S. and Canadian governments, and the United Auto Workers. That would leave the unhealthy portions to pay the bills. It is unlikely that Jones Day has signed on to a case in which it doesn't expect to be paid, but according to a law professor cited by Automotive News, a standard procedure is for the attorneys to take a share of the funds paid to secured creditors.
If the attorneys don't think they can get paid that way, and they don't like their chances getting funds from what's left over, then it has been suggested that the whole deal could "crater." This has also left other unsecured debtors to wonder what chances they have of seeing any money. However, until a clearer picture of Chrysler's finances emerges, it won't be known if this is a legal tactic or something born of genuine concern.
[Source: Automotive News, sub req'd]
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