Reuters: Bankruptcy News: Dewey ex-partners, creditors to advise on bankruptcy

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Dewey ex-partners, creditors to advise on bankruptcy Jun 1st 2012, 13:23 June 1 | Fri Jun 1, 2012 9:23am EDT June 1 (Reuters) - A committee of four former Dewey & LeBoeuf partners has been set up in the law firm's bankruptcy case, giving them a seat at the table in the wind-down of the crippled firm. U.S. Trustee Tracy Hope Davis, whose office supervises bankruptcy cases, appointed John Kinzey, John Campo, who is now employed with law firm Troutman Sanders, David Bicks and Cameron MacRae, who are now partners at Duane Morris, to the committee on Thursday. MacRae is the son of one the name partners of LeBoeuf, Lamb, Greene & MacRae, which merged with Dewey Ballantine in 2007. Once one of the largest law firms in the United States, Dewey was hit by the loss of the vast majority of its roughly 300 partners to other firms amid concerns about compensation and a heavy debt load. The firm filed for Chapter 11 bankruptcy protection on Monday. In a typical Chapter 11 case, a corporation uses its existing assets to continue generating revenue to fund a reorganization. But Dewey has different kinds of assets: its lawyers and their books of business, or clients. Once the lawyers walked away - by now nearly all of its 300 partners have left the firm - the company had little means to produce revenue. The trustee, who works under the Department of Justice, also appointed a committee of unsecured creditors that includes HireCounsel, a staffing firm that put in a claim for $1.56 million against the firm, car service Inta Boro Acres Inc, and Fidelity National Capital Inc, a leasing company that provides technology financing, according to court papers. JPMorgan Chase & Co and a group of lenders had a tab of $76.5 million under a secured credit agreement, according to bankruptcy filings. Unsecured creditors include the U.S. Pension Benefit Guaranty Corp, HBR Consulting and Thomson Reuters Corp , the parent of legal research company Westlaw as well as Reuters. A bankrupt company must provide the committees with money to hire lawyers and financial advisers, and the committees often conduct investigations and review company plans. The case is In re: Dewey & LeBoeuf LLP, U.S. Bankruptcy Court, Southern District of New York, No. 12-12321. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions