Chrysler lawyers want to be first in line for payment

Lawyers for Jones Day, the firm representing Chrysler in its bankruptcy case, and financial advisors Capstone Advisory Group have asked a judge to give their fees “superpriority” when determining the order of payment.

In support of their petition, the two firms said they would be extending significant amounts of credit to Chrysler because of their large fees. Other lawyers take this to mean there won’t be much left after Chrysler sells selected assets to Fiat, the UAW’s VEBA and the U.S. and Canadian governments. The remaining assets would be be liquidated through the bankruptcy process and the proceeds would be used to pay creditors.

One legal expert said he had never heard of attorneys asking for such special treatment, saying its uncommon for lawyers to go unpaid because they generally won’t take cases where their remuneration could be at risk. However, another attorney said this could be a tactic to bring pressure on secured creditors to accept the sales to Fiat.