How Much BigLaw Does a GM Bankruptcy Take?

Even the NY Times is wondering, reporting there’s a “joke” that “there may not be enough experienced bankruptcy lawyers available to handle the filing.”  That’ll be the day.

AmLaw Daily has tracked down four firms so far, and that’s just on the debtor side.

It’s at least five, with another GM engagement we add to the mix.

We’ve got our own spin and some more details, after the jump.

It’s been a busy year for Weil Gotshal, which has already petitioned for $55 million in fees for just three months’ work on the Lehman bankruptcy. That, along with Chrysler (which is represented by Corinne Ball of Jones Day), are the two cases that would vie for the “most-complex bankruptcy in US history” title, were it not for GM.

Stephen Karotkin is leading the Weil team. Think about how much talent there is at Weil right now – Karotkin is at best #3 on the depth chart, behind Harvey Miller (and see our more-interesting profile on him), who is tied up on the aforementioned Lehman deal (although he’s at least nominally involved in the GM matter as well), and Marcia Goldstein, the head of the practice group who herself is busy handling the biggest REIT bankruptcy ever.

Sitting beside Karotkin is Marty Bienenstock of Dewey & LeBoeuf – who is also a Weil Gotshal vet, having just left the firm in November 2007.

Before we even get to the other bit players, the Times explains why two heavy hitters are needed

Mr. Miller and his team are the company’s principal legal counsel for its bankruptcy filing; but it will not represent the new version of G.M. once that is created, as there is a potential conflict between parties with an interest in the existing company and those with interests in the new company. Mr. Bienenstock, a former partner of Mr. Miller’s at Weil, was brought in last fall to help create the company’s restructuring plan. He may end up representing the new G.M., although the decision has not been made.

AmLaw Daily adds two other firms:

GM also is being advised by corporate/M&A partners Joseph Gromacki and Michael Wolf from Jenner & Block in Chicago and bankruptcy and reorganization chair Robert Weiss from Detroit’s Honigman Miller Schwartz and Cohn.

Gromacki chairs Jenner’s corporate practice and serves as cochair of the firm’s securities practice. GM has been a long-time client. In recent years, Gromacki has advised the company on more than $13 billion in deals and other high-profile engagements. (The American Lawyer named Gromacki one of its Dealmakers of the Year in 2007 for his work advising Sam Zell on the $8.2 billion privatization of the Tribune Company.)

Weiss is Honigman’s “liaison partner” with GM, leading a team that represents the auto giant and its North American affiliates, according to his bio on the firm’s Web site. Weiss’s bio also says he advises GM on an “exclusive basis” in relation to the many financially troubled vendors that supply the company with auto parts.

The other player on the debtor side is Robert Joffe of Cravath, who is representing the GM board.

In addition to the hordes of creditors, the government will have a seat at the table, along with the unions, dealers, and scores of other constituents. AmLaw Daily mentions a few of those as well:

GM’s financing arm, GMAC Financial Services, has turned to a legal team from Schulte Roth & Zabel.

As with Chrysler’s Chapter 11 proceedings, Cadwalader, Wickersham & Taft financial restructuring cochair John Rapisardi is lead counsel for the U.S. Treasury Department; R. Ronald Hopkinson, the head of Cadwalader’s private equity group, also is working on the matter.

At the time of this post, GM confirmed it had reached a tentative labor agreement with the United Auto Workers (UAW).

Cleary Gottlieb Steen & Hamilton advised the UAW during the negotiations, just as it helped the union reach a similar agreement with Chrysler last month.

Related posts:

1. More GM BigLaw Info Than Anyone Should Know
2. Weil OWNS Bankruptcy
3. GM Asset Sales and Harvey Back on Top
4. Lauria Losing Sleep, Comes from Cradle of Bankruptcy
5. Weil’s Lehman Bill $63.75 Million and Counting