Opel Operations Could Continue If GM Files For Chapter 11 -Lawyer

The operations of Opel, the German unit of General Motors Corp. (GM), wouldn't necessarily be affected if the parent company were to file for Chapter 11 bankruptcy protection, Opel's top lawyer told journalists Tuesday.

A possible GM bankruptcy filing wouldn't necessarily have far-reaching effects for the German subsidiary Adam Opel GmbH, said Opel lawyer Michael Sarnecki, at an event organized by GM Europe to inform journalists about U.S. bankruptcy law.

The Chapter 11 process is flexible enough to ensure that the operative business of foreign subsidiaries isn't disrupted, said Leo Plank from the law firm of Kirkland & Ellis International LLP at the same event. U.S. bankruptcy law is well suited for the restructuring of large, multinational corporations, Plank added.

Kirkland & Ellis is experienced in bankruptcy proceedings, having guided United Airlines through restructuring under Chapter 11 between 2002 and 2006. The airline was able to continue its regular operations throughout the entire process, Plank added.

 
   Company Web site: www.gm.com 
 

-By Nico Schmidt; Dow Jones Newswires; [phone]; [e-mail]