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Tuesday, 12 May 2009 13:54

Chrysler lawyers have hands out first

Chrysler  lawyers have asked a judge to give their fees priority, which attorneys said suggests unsecured claims such as trade debts (accounts payable owed to businesses) won't be paid.

Chrysler's lawyers from Jones Day, have asked for "superpriority" in determining the order of payment, as did Chrysler's financial advisers, Capstone Advisory Group. In court documents, the firms said they are going to incur large fees and as such would be extending Chrysler significant amounts of credit.

"I've never heard of asking for that explicitly," said David Skeel, a law professor with the University of Pennsylvania, who has written a history of bankruptcy. He said legal fees are always implicitly assumed to be the "first among equals."


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