The lead bankruptcy law firm and the main financial adviser that was involved with Chrysler’s bankruptcy process will receive a total of $23.7 million from the estate of Old Carco LLC for their four months of hard work.
$19.2 million of the total will go to Jones day, the law firm that worked through Chrysler’s entire bankruptcy process. According to The Detroit Free Press, the sum covers fees and expenses Jones Day employees incurred from April 30 (the day Chrysler filed for Chapter 11) through August 31.
The remaining $4.5 million will go to Capstone Advisory Group LLC, which estimated that Chrysler would have received no more than $1.5 billion if it went out of business and sold all assets. Their study was a leading factor in U.S. Bankruptcy Judge Arthur Gonzalez’s approval of a government-backed sale of Chrysler to Fiat SpA, UAW retiree health care trust fund and the United States and Canadian governments.
– By: Stephen Calogera
Source: Free Press