Reuters: Bankruptcy News: Top bankruptcy lawyer to leave Dewey

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Top bankruptcy lawyer to leave Dewey May 11th 2012, 15:57 By Nate Raymond Fri May 11, 2012 11:57am EDT May 11 (Reuters) - Martin Bienenstock, a prominent bankruptcy lawyer who advised on General Motors Co's restructuring in 2009, is leaving the ailing law firm Dewey & LeBoeuf to join Proskauer Rose, a person familiar with the matter said Friday. Bienenstock has been part of a four-person management team overseeing Dewey since a leadership shakeup in March. Earlier this week, two other members of that office announced plans to leave the firm. Bienenstock's expected departure would leave just L. Charles Landgraf as a member of the chairman's office. Bienenstock was not immediately available for comment. Angelo Kakolyris, a spokesman for Dewey, did not immediately respond to a request for comment, nor did Landgraf. Joseph Leccese, chairman of Proskauer, did not respond to a request for comment. Once one of the largest law firms in the United States, Dewey & LeBoeuf has suffered a wave of partner defections in recent months amid a debt crisis and concerns over partner compensation. More than 190 of the firm's roughly 300 partners have left since January. Dewey warned employees last week of layoffs and that it would possibly close. A lawsuit filed Thursday by an employee at Dewey said the firm planned to fire about 450 workers in its New York office on Friday. The U.S. Pension Benefit Guaranty Corporation on Thursday said it would take responsibility for three pension plans covering 1,800 current and future retirees at Dewey. The plans were underfunded by $80 million, the agency said. As partner defections snowballed, Dewey created a five-person "office of the chairman" on March 27 to take over responsibility from its then-chairman, Steven Davis. Davis, who was one of the five partners in that office, was subsequently removed from his leadership roles on April 29 after the firm revealed the New York District Attorney was investigating allegations of wrongdoing against him. Davis has denied the allegations. A spokeswoman for Davis declined to comment. Jeffrey Kessler and Richard Shutran, the other two partners in the office of the chairman, said on Wednesday they were leaving Dewey. Shutran, former co-chair of Dewey's corporate department, is joining O'Melveny & Myers, while Kessler, the former head of litigation at Dewey, is going to Winston & Strawn. Link this Share this Digg this Email Reprints

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