If you thought the Chrysler bankruptcy, with all its politics and debates about seniority was messy, then you ain’t seen nothing yet. At least that’s the message of this NYT piece on the looming GM (GM) nightmare.
The real winners of course are the lawyers and bankers (surprise, right?) who stand to make a killing booking countless hours on behalf of GM, its creditors, the government and of course the union.
Here’s who everyone has working in their corner:
- GM: For two months it’s been working with two major bankruptcy players: Harvey R. Miller of Weil, Gotshal & Manges and Martin Bienenstock of Dewey & LeBoeuf. Also, for general restructuring advice it has hired bankers from Evercore Partners.
- The GM Board: Law firm of Cravath, Swaine & Moore.
- Government: Steve Rattner and his buddy Ron Bloom have brought in Matthew Feldman of Willkie, Farr & Gallagher, and Harry Wilson. For banking and restructuring advice help, they’ve turned to investment bank Rothschild, the law firm of Cadwalader, Wickersham & Taft and the Boston Consulting Group.
- The UAW: Legal representation by Cleary, Gottlieb, Steen & Hamilton and banking advice from Lazard.
So there you have it, the real, guaranteed winners no matter how this turns out. Meanwhile another number from the report that comes out is that GM will need between $40-70 billion in DIP financing, which we’re gussing comes all from us, the taxpayer.