The Wall Street Journal is reporting that Chrysler
LLC has retained the services of law firm Jones Day, which specializes in representing companies as they go through the process of filing for Chapter 11 bankruptcy. Chrysler reportedly hired the law firm several weeks ago, anticipating that its counsel may be required if the $7 billion in government bridge loans it has requested are not approved before the end of the year. Sources say that Corrine Ball is the lawyer tasked with handling Chrysler's situation should bankruptcy remain the only option. She has worked on the Dana Corp. bankruptcy, several UAW
cases and represented General Motors
in its acquisition of Daewoo
While Chrysler hopes that new testimony hearings this week in front of both the Senate and House of Representatives leads to approval of its request for aid, politicians repeatedly grilled CEO Bob Nardellli on why the automaker's owner, private equity firm Cerberus Capital Management, can't save Chrysler with its own money. The retention of bankruptcy counsel, however, suggests that Cerberus is perfectly willing to let Chrysler enter Chapter 11 bankruptcy rather than infuse it with more of its own cash.
[Source: Wall Street Journal
, sub. req'd]