HHR Represents Ontario, Canada in Auto Bailout
Amy
G.
Dulin,
Michael
Luskin,
Richard
Favata,
Celeste
Pozo,
Dustin
P.
Smith
Hughes Hubbard is representing the Province of Ontario, Canada, in the workouts and bankruptcies, or possible bankruptcies, of Chrysler and GM in the U.S. and Canada.
The Canadian federal government and the Province of Ontario contributed 20 percent to the U.S. Treasury’s bailout of Chrysler in the form of loans made before Chrysler’s bankruptcy filing and as a DIP loan upon Chrysler’s bankruptcy filing on May 1.
Chrysler is to be sold to a new entity to be owned by Fiat, the UAW and the U.S., Canadian and Ontario governments; a hearing to approve the sale is scheduled for the end of May. In the meantime, the three governments have been engaged in ongoing negotiations with the U.S. Treasury, GM, the unions, bondholders and other key creditors in an effort to fashion an out-of-court bailout package and to plan for bankruptcy filings in the U.S. and Canada. HHR has been assisting Ontario’s Ministry of Finance and Ministry of Economic Development & Trade with both the out-of-court negotiations and the bankruptcy planning.
Amy Dulin is heading the document comment and review process, and Michael Luskin is dealing with bankruptcy planning and the Chrysler proceedings. Richard Favata, Celeste Pozo and Dustin Smith have been assisting. The matter came to the firm through alumnus Mark Warner, a former HHR counsel who is now legal director for the Ministry of Economic Development & Trade, who contacted Jim Kobak about the work.