Reuters: Bankruptcy News: UPDATE 1-Law firm Dewey dumps executive; talks with rival end

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UPDATE 1-Law firm Dewey dumps executive; talks with rival end Apr 29th 2012, 19:45 Sun Apr 29, 2012 3:45pm EDT * Removes ex-chairman from leadership role * Ends merger/acquisition talks with rival Greenberg Traurig * Dewey close to reaching 90- to 120-day loan extension By Nick Brown and Nate Raymond NEW YORK, April 29 (Reuters) - Embattled law firm Dewey & LeBoeuf said on Sunday it removed its former chairman from various leadership positions amid a probe by the Manhattan district attorney and said that talks with rival firm Greenberg Traurig about a potential transaction ended with no deal. According to an internal firm memo obtained by Reuters, Dewey's executive committee voted to oust Steven Davis from its ranks and remove him from a five-member management team put in place during a leadership shakeup last month. The firm's management also disclosed that talks with Greenberg Traurig had ended. "We are in discussions with other firms about a possible transaction and will consider those and other options for the firm moving forward," the memo said. Dewey, saddled by high debt, has been considering filing bankruptcy as a vehicle to merge with or be acquired by one or more firms. A person close to the firm told Reuters on Sunday that Dewey was close to securing a 90- to 120-day extension of roughly $75 million in loan debt due on Monday, providing a temporary reprieve on a default that could trigger a bankruptcy. In the internal memo, Dewey's management said the decision to remove Davis from his leadership position was unrelated to the end of talks with Greenberg Traurig. It also said the move should not be read as a judgment on the merits of the district attorney's probe. "The executive committee felt it was in the best interests of the firm to take this action," the memo said. Davis had previously been the firm's chairman, but became part of a five-member "office of the chairman" in March, after Dewey overhauled its leadership structure. Davis has now effectively been removed from all leadership positions. In an e-mail to partners Sunday obtained by Reuters, Davis said he was "saddened" by the committee's decision, and said he had done his best to "navigate the firm through challenging and turbulent times." Link this Share this Digg this Email Reprints

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