Chrysler bankruptcy may take 2 years

• Source: The Global Times
• [16:18 May 14 2009]
• Comments

By Shi Jierui

Instead of a two-month's restructuring or filing for bankruptcy which the US President Barack Obama suggested, Chrysler's bankruptcy may take two years, according to Bloomberg which cited an administration official.

The 60-day bankruptcy protection only applies to a sale of Chrysler's top assets to a new entity, the official told Bloomberg. The new entity will be held by Fiat, a United Auto Workers union-aligned trust and the US and Canadian governments.

Creditors would try to get as much of the unwanted factories and other assets to recover as much money as possible, Bloomberg cited lawyers as saying.

"The unsold assets and liabilities may take years to sort out due to the complexities of resolving thousands of commercial, tort, future asbestos, dealership and employee claims," Martin Bienenstock, a partner with Dewey & LeBoeuf LLP who has advised General Motors and Chrysler Financial on restructuring, told Bloomberg.