Report Says Chrysler Bankruptcy Could Take up to Two Years and not 60 Days

In another twist to the Chrysler LLC imbroglio, a report from Bloomberg citing an unnamed administration official said that the automaker's bankruptcy procedure may take as long as two years and not the two months period initially projected by President Barack Obama. The administration official told the news agency that the 60 days announced by Obama at a press conference at the end of April only applies to the sale of Chrysler's best assets to a new entity held by Italy's Fiat S.p.A., an auto workers health trust and the U.S. and Canadian governments.

Lawyers seem to be backing the official's claims as they told the news agency that the firm's creditors would later on kick in fighting their cases in court over unwanted factories and other assets to get their money back.

"The unsold assets and liabilities may take years to sort out due to the complexities of resolving thousands of commercial, tort, future asbestos, dealership and employee claims," told Bloomberg Dewey & LeBoeuf LLP partner, Martin Bienenstock.

[Via: Bloomberg]