No doubt this is timed to dodge the bulk of the hearings.
Bear in mind, of course, that this is not unusual even for a firm that doesn’t eventually end up in Chapter 11, but wants to be prepared for the eventuality.
[Breaking: The Wall Street Journal]
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They are just locking in now before GM, F and a whole host of banks take all the good bankruptcy lawyers.
wideclops
OK Washington – you made us drive all the way down there and beg like bitches for some free money and have pushed us to the brink! Ready to play the bankruptcy card. Just get ready for THE GREAT DEPRESSION that will soon follow. Because we said so.
Stick it,
Chrysler
2 – except that…Jones Day? isn’t known for their bankruptcy lawyers. Odd choice.
@2 – Since when is Jones Dat among “all the good bankruptcy” lawyers? I mean, they are probably the best bankrupcy lawyers in Cleveland, but other than that this looks more like lawyering up on the cheap than going for quality.
Thank you,
The ATL Troll
@5 Apparently they have a few studs
http://dealbook.blogs.nytimes.com/2008/12/03/the-case-of-the-photo-the-lawyers-and-the-automakers/?scp=1&sq=chrysler%20attorneys&st=cse
Why rent a more expensive bk shop when you’re just trying to bluff?
“Jones Day? isn’t known for their bankruptcy lawyers.”
What is that saying? “Better to keep your mouth shut and be thought a fool than to open it and remove all doubt”? I guess you don’t think it applies to intertube comments?
JD has lost more prominent BK partners than most firms ever have–Skadden and Weil being the exceptions. Weil is already engaged by GM, Skadden is being coy, but likely to be either Ford counsel or involved in some significant way in all three, and K&E (with the return of Spray and the presence of Cieri–ex-JD) prob has the inside track on Ford or a CC rep.
Oh, 9 again, when someone says “Schulte represents Cerberus, why didn’t they rep Chrysler?”: (1) SRZ doesn’t have the HP in their BK group to do such a large debtor case and (2) SRZ will certainly rep Cerberus in the BK, billing w/o needing to submit their bills.
Jones Day is an excellent law firm when it comes to bankruptcy, and while the firm was founded in Cleveland, its managing partner is in DC (which is also the firm’s biggest office). 10 is correct when it comes to Schulte, as well. A 20 person BK department isn’t going to handle a Chrysler bankruptcy, not to mention the fact that Cerberus will need independent counsel of its own in the event of a BK filing.
@9/10 – Defensive much?
I’m very sorry Jones Day was the best firm to offer you a summer associate position, and I’m hoping they don’t rescind it before you start.
Listen, Jones Day may be an excellent firm in such areas as appellate litigation and having the scariest lobby in NY, but no one has ever had this conversation:
-”We’re in serious trouble here, we may need to consider filing for bankruptcy”
-”Well in that case, spare no expense and get us the finest lawyers available”
-”OK, I’ll give Jones Day a call”
Jones Day is a fine, middle-of the-pack somewhere under Willkie, kinda bankruptcy firm, but please hold off on the screed on how any debtor would feel happy, fortunate even, to get Jones as their lawyer.
who did the last delta airlines 11?
they was good.
12 – You would if Weil, Skadden, and KE were already taken.
http://www.chambersandpartners.com/USA/resultseditorial.aspx?cid=618&pid=513&solbar=1&grouptype=1
has anyone figured out how much it’s going to cost to put 3 million people on unemployment for over a half year + losing all the federal, state, local + ~15% FICA and medicaid for as long as it takes all these people to empty out their towns and states to find new employment?
and how much is it going to cost to “bail out” entire states like michigan??
there’s an unintended consequence for all you tough guys who keep getting on soap boxes and saying “fuck manufacturing!, fuck the big three!, fuck the unions!”.
what’s going to happen when municpal bonds start defaulting and the entire capital markets system disappears?
there’s a reason why argentina has to pay 10%++ interest to finance itself every 10 years.
love,
big time successful street guy so save your self righteous bullshit for someone else who cares.
why don’t we just kill all equity and debt for every public company and start over?
i’m more concerned about debt markets than anything else.
do you back office wonders realize that 30 years ago, 80% of all corporate debt was investment grade?
i really hope the bondholders of GM and F don’t stand for this forced execution that they’re expected to just submit to.
@14 – Are you seriously going to cite Chambers? Why not throw in Vault while you’re at it?
Listen, I’m not saying Jones Day is not a decent firm, but you are deluded if you are putting them #4 after the firms you metioned. Chrysler is doing this to save cash while put on a show of prepping for bkr.
@ 15
You daft moron. No one is talking about axing ALL of the employees or permanently shutting down each firm.
Maybe if you took off your tin-foil helmet you’d know that.
In your defense, please ignore the pikers who claim that the above is in fact the solution. No-one with 1/2 of a barely functional brain thinks that is the solution (its not). An orderly reorganization is what’s needed to make the Big 3 leaner so that they can operate profitably going forward.
@15,
You’ve presented a stellar case for your fucktardedness in one simple, elegant post. Congrats mouthbreather!
18 – take it easy and put your pejorative guns down. you wouldn’t call me a moron if you were discussing this with me personally, so don’t feel so free to do anonymously.
please describe an “orderly” reorg?
fucking suppliers into bankruptcy?
expecting debt holders to take one for team america when they would do better in a 7?
breaking the union?
be specific.
@15,
You’ve presented a stellar example of your fucktardedness in one simple, elegant post. Congrats, mouthbreather!
18 – take it easy and put your pejorative guns down. you wouldn’t call me a moron if you were discussing this with me personally, so don’t feel so free to do anonymously.
please describe an “orderly” reorg?
fucking suppliers into bankruptcy?
expecting debt holders to take one for team america when they would do better in a 7?
breaking the union?
be specific.
more importantly, i wonder which lit shop is gonna get that juicy unsecured creditor committee work. dare i say RSM McGladrey??? :0
hi 21,
i hate liberals like you. the type of person who starts a fight with some, calls them names, and then calls the cops and sues when i break their jaw.
ever been cracked in the face? it really hurts.
@22/15 Debt holders are screwed anyways — they are not taking it for anyone.
Orderly re-org:
i) cut down number of product lines/ brands
ii) renegotiate with distributors
iii) cut wages from $70 to $45 like Toyota
iv) cut redundancies arising from (i) and (ii)
You work for McKinsey?
Hi 24,
Are you serious?
1.) Not sure how you get to “liberal”
2.) Your post was fucktarded
3.) I’ve had my face cracked enough to know it hurts. It won’t hurt any more from a smug prick like you.
4.) BK doesn’t equal “bailing out the entire state of MI”
5.) 3M workers (uncited) just don’t jump en masse onto the unemployment rolls if the Big 3 go into BK.
6.) We are a long way from munis defaulting en masse and the entire capital system dissapearing.
Panic much?
I’m serious like cancer.
I’m on an iphone so im not going to waste my time fighting a touchscreen to type out a long reply. You’ll probably make fun of my grammer anyway.
Have you given any consideration to the fact that mgmt and the bod has a fidiciuary responsibilty to shareholders and debtholders, and 7 may be a better option than an 11, especially since all the jerkoffs calling for a prepackaged reorg which kills all the equity and debt leaves the owners of the company with zero?
I’m serious like cancer.
I’m on an iphone so im not going to waste my time fighting a touchscreen to type out a long reply. You’ll probably make fun of my grammer anyway.
Have you given any consideration to the fact that mgmt and the bod has a fidiciuary responsibilty to shareholders and debtholders, and 7 may be a better option than an 11, especially since all the jerkoffs calling for a prepackaged reorg which kills all the equity and debt leaves the owners of the company with zero?
oh and to bullet point number 6:
A year and a half ago we were a long way from leh, bsc, ms, c, mer et al going out of business, no?
@22
The name calling wasn’t necessary, but your post was a bit pompous and begged for it, regardless, I appologize for not taking the higher road.
See #25/26. I realize in practise this is easier said than done, the point is though, that with dedication, it can be, and should be (about damn time).
@ 27/28
Who the f is going to buy GM/F/Chrys assets in chpt 7? Toyota, Honda? haha come on gimme a break. Your thinking out of the box isn’t necessarily a bad thing though, perhaps just not too-well thought out. Equity is already wiped out (common is essentially a call option, and has been for quite some time), and the bondholders deserve what they get, unfortunately. Fixed income investors in general have been too lax in the past, everyone has to pay the piper some day.
“Have you given any consideration to the fact that mgmt and the bod has a fidiciuary responsibilty to shareholders and debtholders”
Now I know you’re not serious.
Props to: “I’m on an iphone so im not going to waste my time fighting a touchscreen to type out a long reply.”
nice touch Big Time Wall Street
love,
@19
There have been numerous bankruptcies in the automobile industry. They have been handled by all the bid debtor bankruptcy shops, including K&E, Skadden and Jones Day. Jones Day handled Dana, a supplier to the Big 3. It was the largest bankruptcy filing in 2006, and it turned out very well considering the dismal results of most other supplier bankruptcies. Jones Day is well connected in rust belt and is one of the only firms that can handle such a large chp 11. Other firms would include K&E, Skadden and Weil. I am sure that GM is engaging one.
Jones Day is no longer a Cleveland law firm. The largest office is actually NY (not DC, as someone above posted) – but DC is close behind.
I think any of the Big 3 would be foolish to attempt to “lawyer up on the cheap” given the dire state of their affairs.
good morning 30 and 31,
You’re a patroning jerkoff and I don’t like you.
What sort of backoffice job do you do?
I own a senior unsorb and I’m short common. GM goes 7 or nothing if they use title 11.
Let me help you out retard. Look up what happened to mitsu sales when they went bankrupt. Big 3 suppliers will shut down so none of it will matter because they won’t be able to make cars or parts. GM already has their main suppliers at 90+ days.
Here’s the really good part. Theres this little company called AIG which sold 45+ billion CDS on GM debt. Oh, you didn’t know that? The government is already on the hook. I’ve got close to 1.5 mm of my own money at risk here but maybe I didn’t do my homework. Hahaha.
A voluntary restructuring is what will happen.
Now go back to work and see if you score some free hot chocolate in the kitchen. I’m going to sell the GS I bought at 65.31 last week and then go masturbate to naked pictures of my penthouse centerfold girlfriend. 1994.
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