According to Reuters, the U.S. government has retained two law firms with extensive bankruptcy experience and the investment bank Rothschild to advise officials on the taxpayer-backed restructuring of General Motors and Chrysler, a person with direct knowledge of the work said.
New York law firm Cadwalader, Wickersham & Taft was hired by the U.S. Treasury last month and will consider a range of possibilities for the struggling automakers including the prospect of a bankruptcy funded by the U.S. government, the person said.
Cadwalader is joined by Chicago-based law firm Sonnenschein, Nath & Rosenthal and Rothschild in working with U.S. officials as they prepare to review turnaround plans being readied by the two automakers, the person said.
A spokeswoman for Sonnenschein in Los Angeles confirmed that the firm had been engaged to advise Treasury on "ongoing matters related to the 2008-2009 developments within the U.S. automobile industry."
More to come.
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