After weeks of speculation, Chrysler has finally filed for Chapter 11, a development that many deem as long overdue. Even during the early phases of the celebrated financial bailout plan, critics saw that it was just a matter of time before Chrysler bit the bullet. And apparently that time is now.
BankruptcyData.com reports that Chrysler LLC has filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York. The Company is represented by Corrine Ball of Jones Day. According to BankruptcyProfessional.com, since 1990, Jones Day has served as petitioning counsel for 7 of the nearly 300 public company bankruptcies listing a pre-petition asset figure of $1 billion or more.
Chrysler has indicated that it maintains approximately 100,000 employees. That figure makes it the third largest corporate employer to seek refuge with the U.S. Bankruptcy Court since 1980, according to BankruptcyData.com. The largest and second largest employee counts belong to Kmart Corporation and Delphi Corporation (DPHIQ), respectively.
In addition to its high employee and asset count, Chrysler’s filing is newsworthy in another respect. George Putnam, III explains, “The Chrysler bankruptcy could be particularly interesting because of the government involvement. The Obama Administration may have a few things to learn about the bankruptcy process.”
(Source) Press
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