Chrysler, GM Dealers Hire Lawyers For Bankruptcies
GM and Chrysler dealers have both hired lawyers to represent them in bankruptcy proceedings, CNBC has learned.
A group of Chrysler dealers Wednesday said it has hired the law firm of Arnold & Porter LLP for representation if Chrysler files for bankruptcy.
The move comes just a day before Chrysler's deadline for completing a tie-up with Italy's Fiat SpA in order to secure $6 billion in U.S. government loans and avoid the need for in-court restructuring.
Chrysler Chief Executive Robert Nardelli told employees in a memo Wednesday that the auto maker is making progress toward the Fiat alliance. Also, Chrysler's unionized auto workers began voting on a new cost-cutting pact that appeared on track to passage; the results are expected to be released late Wednesday.
And the GM National Dealer Council also hired a law firm to represent them in bankruptcy court. The group hired the firm of Orrick Herrington & Sutcliffe. GM NDC says the firm will advocate for dealers in any bankruptcy process.