Automakers Retain Counsel to Mull Bankruptcy Options [Update]

General Motors has hired Harvey Miller of the New York law firm Weil Gotshal & Manges to help the beleaguered auto giant consider its bankruptcy options, should the US Senate be unable to pass an industry bailout package. Miller created and developed the firm’s Business Finance & Restructuring department.

Others involved in the matter include restructuring veterans Jay Alix of Jay Alix & Associates, the nation’s largest turnaround & crisis management firm; William Repko of boutique investment bank Evercore Partners; and Arthur Newman of financial advisory firm the Blackstone Group.

Meanwhile, Chrysler has retained Cleveland law firm Jones Day as its bankruptcy counsel. Jones Day handled the reorganization of car & truck parts supplier Dana Holding, and represented the official committee of retired employees for Tower Automotive’s bankruptcy. It also advised International Automotive Components in the acquisition of some businesses from bankrupt auto interiors supplier Collins & Aikman.

UPDATE

From WSJ Law Blog:

GM CEO Rick Wagoner has reportedly been reluctant to publicly embrace bankruptcy, fearing that it would scare off potential buyers. In addition, the cost of financing a Chapter 11 filing would be enormously expensive and difficult given tight credit markets.

Dewey LeBoeuf’s Martin Bienenstock, who worked on the Enron bankruptcy, has also been tapped to advise GM.