Opel Operations Could Continue If GM Files For Chapter 11 -Lawyer
29 April 2009 - 2:23AM
Dow Jones News
The operations of Opel, the German unit of General Motors Corp.
(GM), wouldn't necessarily be affected if the parent company were
to file for Chapter 11 bankruptcy protection, Opel's top lawyer
told journalists Tuesday.
A possible GM bankruptcy filing wouldn't necessarily have
far-reaching effects for the German subsidiary Adam Opel GmbH, said
Opel lawyer Michael Sarnecki, at an event organized by GM Europe to
inform journalists about U.S. bankruptcy law.
The Chapter 11 process is flexible enough to ensure that the
operative business of foreign subsidiaries isn't disrupted, said
Leo Plank from the law firm of Kirkland & Ellis International
LLP at the same event. U.S. bankruptcy law is well suited for the
restructuring of large, multinational corporations, Plank
added.
Kirkland & Ellis is experienced in bankruptcy proceedings,
having guided United Airlines through restructuring under Chapter
11 between 2002 and 2006. The airline was able to continue its
regular operations throughout the entire process, Plank added.
Company Web site: www.gm.com
-By Nico Schmidt; Dow Jones Newswires; +49 69 29 725 500;
nico.schmidt@dowjones.com