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WEDNESDAY, NOVEMBER 25, 2009
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Chrysler Hires Bankruptcy Firm

Privately owned automaker preparing for Chapter 11 should feds not help out

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(Newser) – Chrysler has contracted a law firm to help it prepare for bankruptcy, the Wall Street Journal reports. The hiring of Jones Day suggests the automaker faces immediate failure if Congress decides to deny financial assistance to Detroit automakers. Jones Day has experience in automotive matters and has represented the United Auto Workers in many cases.

Chrysler has sought mergers to boost its finances, and had approached General Motors before that firm developed dire cash problems of its own. Chrysler’s CEO, Robert Nardelli, has said he would accept a forced merger with GM as a condition for receiving federal bailout funds.

Auto executives, from left, Chrysler CEO Robert Nardelli, Ford CEO Alan Mulally, and UAW president Ron Gettelfinger, prepare after testifying before a House hearing today.
Auto executives, from left, Chrysler CEO Robert Nardelli, Ford CEO Alan Mulally, and UAW president Ron Gettelfinger, prepare after testifying before a House hearing today.   (AP Photo)
Chrysler CEO Robert Nardelli listens to a question on Capitol Hill today during a House Financial Services Committee hearing on the bailout of American automakers.
Chrysler CEO Robert Nardelli listens to a question on Capitol Hill today during a House Financial Services Committee hearing on the bailout of American automakers.   (AP Photo)
The Chrysler logo appears on display at a Chrysler dealership in Springfield, Ill., Monday, May 14, 2007.
The Chrysler logo appears on display at a Chrysler dealership in Springfield, Ill., Monday, May 14, 2007.   (AP Photo/Seth Perlman)
Chrysler CEO Robert Nardelli testifies on Capitol Hill yesterday, before a Senate Banking Committee hearing on the auto-industry bailout.
Chrysler CEO Robert Nardelli testifies on Capitol Hill yesterday, before a Senate Banking Committee hearing on the auto-industry bailout.   (AP Photo)
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Shannonals
Dec 5, 08 4:03 PM CST
Bankruptcy? Chrysler is requesting funds, but is looking into bankruptcy already Reply
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Chrysler • United Auto Workers • bankruptcy • General Motors • merger • Robert Nardelli • auto industry • Big Three • Chapter 11 • law firm • financial crisis • Jones Day

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