GM turns to CC on Europe restructuring
Clifford Chance (CC) has taken a large role advising on the restructuring and potential insolvency of auto giant General Motors' (GM) European arm. The news comes as GM struggles to secure funding from European governments after asking for a $6bn (£4.3bn) loan to save its business.CC is advising GM Europe - which manufactures and sells Saab, Vauxhall and Opel - on the restructuring.
March 10, 2009 at 07:21 AM
2 minute read
Clifford Chance (CC) has taken a large role advising on the restructuring and potential insolvency of auto giant General Motors' (GM) European arm.
The news comes as GM struggles to secure funding from European governments after asking for a $6bn (£4.3bn) loan to save its business.
CC is advising GM Europe – which manufactures and sells Saab, Vauxhall and Opel – on the restructuring.
The car giant has requested a €3.3bn (£3.02bn) loan from the German Government to help keep Opel afloat, with an offer of 50% of the car brand to outside investors.
GM has already secured a $13.4bn (£9.65bn) cash injection from the US Government and is looking for a further $22bn (£15.8bn) in low-interest loans to stop its US business from going under.
Fritz Henderson, GM's chief operating officer, warned that Opel and Vauxhall could become insolvent by the autumn if state aid is not provided.
If GM does not receive an injection of cash from European governments, then 300,000 jobs could be at risk from Opel alone.
Press reports have suggested that US firm Baker & McKenzie and German-based restructuring experts Wellensiek are also advising on the restructuring.
Bakers is advising GM Europe, while Wellensiek has been instructed by Opel.
All firms declined to comment.
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