No comment is yet forthcoming from either the law firm or Chrysler itself, reports The Wall Street Journal, but inside sources say the hiring took place last month in preparation for a Chapter 11 bankruptcy proceeding - an almost inevitable outcome if Congress doesn't provide emergency cash by the end of the year.
While the news is not surprising - many pundits have been postulating Chrysler's demise for some time now - it is a clearer measure of the truly dire and immediate need of a capital infusion at Chrysler, and the car industry in general.
Chrysler's request to Congress, submitted earlier this week, outlined a need for $7 billion in loans before the end of 2008, with another $6 billion sought from the DOE's $25 billion retooling fund.