Promote Your Attorney Profile on Law.net - Get Found / Earn More!
$3 Million in Legal Services for California’s Undocumented Children
$3 Million in Legal Services for California’s Undocumented Child...
Who Will Replace Eric Holder as United States Attorney General
Who Will Replace Eric Holder as United States Attorney General
Boston Marathon Trial Will Go Forward in Boston
Boston Marathon Trial Will Go Forward in Boston
BP Argues It Overpaid Claims, Judge Says Too Bad
BP Argues It Overpaid Claims, Judge Says Too Bad
Your profile matches an open legal position. Apply now!
Job Listings

Heller Ehrman Files for Bankruptcy; Remaining Employees May Not Be Paid

333 BushWhat’s left of San Francisco’s Heller Ehrman, which dissolved in November, has filed for Chapter 11 bankruptcy protection.

Former Heller partner Peter Benvenutti said the firm filed not because it is out of money, but because its main two creditors, Bank of America and Citibank, have refused to renegotiate the terms of a $5.7 million debt.

Last week a judge ruled that the firm’s San Francisco landlord, 333 Bush Associates, was entitled to a $48 million writ of attachment. A portion of Heller’s assets were immediately frozen, and Bush Associates became a secured creditor, ahead of dozens of unsecured creditors waiting in line for their money.

Benvenutti says the firm is collecting money and expects to recover “tens of millions” in collections going forward. The firm has $3.7 million in cash, and expects to recover about $35 million in accounts receivable. The firm’s liabilities consist of the $5.7 million it owes to lenders, $10 million in other accounts payable and $4 million in taxes.

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


There are 54 employees left at Heller. The firm has no cash to pay them their regular salaries, and its main banks froze $6.5 million in the firm’s accounts upon learning that the firm might file for bankruptcy. The firm filed first-day motions with the court, asking to use cash collateral to pay the remaining employees, who have also been promised 100% retention bonuses in exchange for staying on.

The firm says it hopes to repay the bank lenders in the next three or four weeks.

Teams from Greenberg Traurig and Pachulski Stang Ziehl & Jones are bankruptcy co-counsel for Heller.

Heller Ehrman Files for Bankruptcy; Remaining Employees May Not Be Paid by

Tagged: , , , , , , , , , , , , ,

Posted by on December 30, 2008. Filed under Legal News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

 

 

Job of the Day
Senior Paralegal with 5+ years' of experience
USA-MD-Baltimore

The Senior Paralegal will be part of the Investments Legal team within AEGON USA Investment Management, LLC (AUIM), a registered investment adviser regulated by the U.S. Securities & Exchange Commissi...