Home

Judge Changes Mind and Okays Dewey to Tap Their Collateral
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

The judge overseeing Dewey & LeBoeuf’s epic bankruptcy — the all-time largest law firm collapse — has changed his mind over yesterday’s decision to bar Dewey from tapping collateral held by J.P. Morgan in order to fund their wind down. He had been dissatisfied that the lenders’ were demanding a lien on the proceeds of future litigation in exchange for access to the money, but today he realized the necessity of Dewey having access to the money. Dewey estimates that it needs $8.6 million to fund three weeks of operation, and now that it has access to its collateral, it has $13.4 million in hand. Said U.S. Bankruptcy Judge Martin Glen in an interim order:

“Granting the interim relief requests is necessary to avoid immediate and irreparable harm to the Debtor [Dewey] and its estate pending the Final Hearing, and otherwise is fair and reasonable and in the best interest of the Debtor, its estate, and its creditors and equity holders, and is essential for the continue operation of the Debtor’s business.”

The judge had bean wary of granting such permission because no creditors committee had yet been formed, which is necessary for the parties whom Dewey owes money to give voice on the issue. Nevertheless, such a committee for unsecured creditors swiftly met at noon yesterday, and what several of the 55 attendees said they had never seen such a committee called to order so quickly — within 48 hours after Dewey filed for bankruptcy.

  
What
Where


The committee of unsecured debtors will include the staffing agency Diamond Personnel, who Dewey owes $740,519, and possibly Winthrop Resources Corporation, who Dewey owes $35.5 million — though Dewey listed Winthrop as a secured creditor.

Dewey has only two partners on board in their American office, Stephen Horvath III and general counsel Janis Meyer, who are staying on for several months liquidate Dewey.

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!!






 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Insurance Defense Trial Attorney/ Senior Counsel

USA-CA-San Francisco

Job description Trial Attorney - Personal Injury Defense Full Job Description Hickey Smith ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top