Chrysler began its stint in bankruptcy court on Friday with a plea for haste and a doomsday warning that, if it could not execute its proposed restructuring within two months, hundreds of thousands of jobs could be lost.

Outside the Manhattan courtroom, the row over the Chapter 11 filing rumbled on with creditors crying foul and an Obama administration official accusing them of “red herring” arguments.

“We have to hit it in high gear,” Corinne Ball of Jones Day, representing Chrysler, told the packed court in the first hearing on the carmaker’s petition.

Chrysler is hoping that because it was able to convince many stakeholders to accept concessions in exchange for supporting its restructuring plan, bankruptcy judge Arthur Gonzalez will let it cancel dealer contracts and impose the plan to swap $6.9bn of debt for $2bn in cash on those debtholders that have not accepted it.

Source/Full Story:: FT.com

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