GM hires bankruptcy advisors

[BeatleBoot]

Source: The Detroit News

General Motors Corp. has hired bankruptcy counsel and restructuring advisors to prepare for a filing if Congress does not authorize $14 billion in emergency federal loans.

"The Board is meeting frequently and is monitoring the situation closely and is considering all options, as is management," GM spokesman Steve Harris told The Detroit News tonight. "And they have engaged appropriate advisors for all contingencies."

The revelation, first reported in the Wall Street Journal, sends a signal to Congress and Bush administration officials the severity of GM's financial situation, though the automaker has said repeatedly it is working to avoid a Chapter 11 bankruptcy filing. It was unclear what impact the disclosure would have on a possible Senate vote later tonight or tomorrow on authorizing an auto bailout.

The Journal reported that GM has recently hired Harvey Miller of New York law firm, Weil Gotshal & Manges LP to handle any bankruptcy filing. GM also has retained restructuring experts Jay Alix, Evercore Partners' William Repko, and Arthur Newman of the Blackstone Group, according to the Journal.








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