Legal News

Heller Ehrman Files for Bankruptcy; Remaining Employees May Not Be Paid
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

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.

  
What
Where


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.

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.

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!!




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





 

RELEVANT JOBS

Consumer Bankruptcy Attorney

USA-TX-Dallas

Law firm is seeking Staff Attorney for consumer financial representation. The ideal candidate wil...

Apply now

Litigation Firm Billing Manager or Coordinator

USA-CA-Beverly Hills

Job Description Victor Rane is a growing litigation and trial firm with experienced attorneys loo...

Apply now

Staff Attorney-Senior Advocacy Unity

USA-FL-Tampa

Position Title: Staff Attorney (Full-time) Location: Ybor City Office Position Description: Bay A...

Apply now

Paralegal

USA-GA-Dallas

Paralegals support lawyers by maintaining, drafting documents, and organizing files, calling on lega...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Junior To Mid-Level Patent Associate Attorney

USA-FL-Doral

Doral office of a BCG Attorney Search Top Ranked Law Firm seeks a junior to mid-level patent associa...

Apply Now

Commercial Litigation Attorney

USA-LA-Lafayette

Lafayette office of a BCG Attorney Search Top Ranked Law Firm seeks a commercial litigation attorney...

Apply Now

Mid-level Intellectual Property Litigation Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search Top Ranked Law Firm seeks a mid-level intellectual prope...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top