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GM deal absorbs 15 law firms, so far
The US Government will now own a majority stake in American auto giant and icon General Motors, which filed for bankruptcy yesterday.
Kate Gibbs
The Government is wagering upwards of $US30 ($37.02) billion that it can return GM to profitability and reverse a decade-long decline, creating a newly competitive carmaker by the end of the northern summer.
The restructuring comes after months of negotiations with the Obama administration over the terms of government bailouts for GM.
Information on legal advisers for the biggest industrial bankruptcy filing in US history is still being determined, but 15 law firms have so far been handed work on the deal.
Leading the effort for GM is a team from Weil, Gotshal & Manges. Clifford Chance has taken a high profile role advising GM Europe on the restructuring of its business, which will include the proposed sale of its flagship Opel brand.
Shearman & Sterling has taken the role as lead adviser to the German government, which has been heavily involved in the discussions to GM’s applications for state aid.
A partner at a US firm told Legal Week: “Legally this deal is not groundbreaking, I expect it would be fairly straight forward. However, it will keep a large number of people busy and as such is a very nice and juicy instruction to have, especially for Weil Gotshal as lead US counsel. I have absolutely no idea how much feed GM will pay all of these firms, but I would assume it is millions of dollars.”
