General Motors has turned to Weil Gotshal & Manges and Dewey & LeBoeuf for advice on potentially filing for Chapter 11 bankruptcy protection.
Weil Gotshal veteran and restructuring star Harvey Miller and partner Stephen Karotkin are leading the team, while former Weil restructuring co-head Martin Bienenstock is leading the Dewey team advising on the deal.
Earlier this year The Lawyer reported on Dewey hiring Bienenstock. Bienenstock was co-chair of Weil’s business finance and restructuring department and part of the firm’s management committee (30 November).
The move comes after a $14bn (£9.35bn) government rescue package for GM and Chrysler collapsed last night leaving both companies in dire financial difficulties. The bailout reportedly failed over a disagreement on labour costs.
Chrysler is understood to have retained Jones Day partner Corinne Ball for advice on possible bankruptcy.
Weil Gotshal’s bankruptcy team has now been instructed on two of the most significant bankruptcies in recent history.
Earlier this year The Lawyer reported on Miller and a team from the New York firm advising Lehman on its Chapter 11 proceedings (22 September).
Weil Gotshal was unavailable for comment.