• 05 Dec 2008 at 3:45 PM

Bankruptcy Is Not An Option (Except When It Is)

By Dealbreaker

The Chrysler hire of Jones Day for Armageddon counsel is looking less and less like a bluff. (Not that we thought it was to begin with, but not that we didn’t either).
With Congress looking unlikely to just rubber stamp a bailout, and the rather pointed questioning, in particular of Chrysler, by the Critters, “If Cerberus won’t help you, why should we?” Chrysler is pulling out the stops in Corinne Ball (who, it appears, has some experience in these matters).
Starting to look elaborate for a bluff. Yet, the best bluffs bear these hallmarks. Oh, dear. What’s a decision-maker to think?
Chrysler Hires Law Firm Jones Day as Bankruptcy Counsel [The Wall Street Journal]
Jones Day Chrysler Bankruptcy Coup [Above The Law]

Comments (12)

  1. 1
    Posted by guest | December 5, 2008 at 3:48 PM

    1

  2. 2
    Posted by american bandersnatch | December 5, 2008 at 3:52 PM

    You take the same approach you took with Bear, Lehman, etc. You let one go under and then save the others who then will reform themselves. As General Broulard said “There are few things more fundamentally encouraging and stimulating than seeing someone else die.”

  3. 3
    Posted by guest | December 5, 2008 at 4:12 PM

    Well, the “Depression” play certainly didn’t pan out yesterday. So they are pulling the Bankrupcy bluff today, and what will it be tomorrow? Finding some kind of mass contaminent at the plants?
    Then maybe they can get some FEMA or OSHA money! They just aren’t letting go of the free Gov’t money train, not yet.

  4. 4
    Posted by Anal_yst | December 5, 2008 at 4:21 PM

    @ 3
    Tomorrow’s (moday’s) news: “GM to convert to Nuclear Utility”?

  5. 5
    Posted by guest | December 5, 2008 at 4:22 PM

    @2 As Voltaire said of Admiral Byng’s execution, “in this country, it is wise to kill an admiral from time to time to encourage the others”

  6. 6
    Posted by guest | December 5, 2008 at 4:23 PM

    who’s going to handle the California and Michigan bankruptcies?

  7. 7
    Posted by guest | December 5, 2008 at 4:28 PM

    if republican policians are so bad at managing government, then why are only liberal states approaching insolvency?
    I really need someone with 10 iq points more than me explain this.

  8. 8
    Posted by guest | December 5, 2008 at 4:28 PM

    Anal_yst: Totally can see that happening with one of the Detroit 3; just to piss off congress and those damn hippies!

  9. 9
    Posted by american bandersnatch | December 5, 2008 at 4:59 PM

    @5 – Thanks – “Pour encourager les autres” was what I was grasping for.

  10. 10
    Posted by guest | December 5, 2008 at 5:07 PM

    The CEO of Chyrsler said that the what we need to do is get the number of annual car sales back up to about 14 million a year and then the car companies will all be fine. Currently the annualized rate looks to be about 10 million.
    So you see the problem is not the car companies. Once again it is all about the consumer not buying enough.
    Cheaper mtge rates, cheaper credit card rates, and cheaper car loans are all we need to get us on the road to boom times again.
    Heck, i just saw a dude on CNBC who said that the reason the market has traded higher today was because the news is so bad that everyone realizes that the “government is going to save us” with a trillon dollar stimulas package.

  11. 11
    Posted by guest | December 5, 2008 at 5:43 PM

    GLD

  12. 12
    Posted by Novice | December 7, 2008 at 1:28 PM

    Paths of Glory references more than make up for the shitshow that the other articles’ comments are.

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