The list of creditors that are owed big money by bankrupt Chrysler LLC includes many of the usual companies that are suppliers to the auto industry. But not all of them are immediately obvious, even to veterans of what remains of the auto supplier’s beat. So it’s not surprising that Johnson Controls is owed $50 million, or Continental Automotive, $46 million, or Cummins Engine, $44 million. These are all large, global companies that have been in the auto arena for decades or more, and are among the biggest creditors that would lose the most money if Chrysler doesn’t revive itself.
It’s puzzling that Chrysler’s ad agency, BBDO Detroit Incorporated, is the second largest creditor, at $58,055,133.44? Who would have thunk it! Well maybe it’s like American beer, the advertising and promotion cost more that the production of the stuff inside the can. Still, this is more money owed for advertising than steel, since U.S. Steel Corporation is owed only $16,182,772, as of April 30.
Then we have an order entered Saturday by the Honorable Arthur J. Gonzalez, the presiding judge in the Chrysler bankruptcy matter. It grants a motion for admission to practice pro hac vice, or for the occasion, to Michael S. Leib, a member in good standing of the bar in the State of Michigan to practice in this one case before the Federal court in New York for a $25 fee. This without question is going to be much smaller than the fee he charges his client, creditor Robert A. Lutz. (more…)