Chrysler hires Jones Day as bankruptcy counsel

[boomerang]

The WSJ is reporting this. Looks to be a pre-emptive step at this time.

http://online.wsj.com/article/SB122849949643583239.html

If the loans aren't forthcoming, the thing to watch is whether this is a Chapter 11 or Chapter 7 filing.

 

[dmcowen674]

Hopefully this means no bail out.

Edit: No, damn, "pre-arranged bankruptcy" is part of the bail out.

GM to file for bankruptcy as well:

12-5-2008 GM, Chrysler Mull Bankruptcy

General Motors and Chrysler executives are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multibillion-dollar government bailout, Bloomberg reports, citing a person familiar with their internal discussions.

Staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy -- negotiated with workers, creditors and lenders -- could be used to reorganize the industry without liquidation, Bloomberg reports.

 

[StageLeft]

A well timed blurb in the newspapers to add to urgency. Might as well keep Jones on retainer even if they get the bailout, it's not like they won't need them next year anyway. Chrysler is interminably fvcked without continual infusions of cash for the indefinite future. Sales down 47%, no confidence in the company from anywhere, no chance for it to get on its feet without being hand-held like a mental patient on let's-go-to-the-zoo day.