Dewey Looking For a Buyout with Pre-packaged Bankruptcy

While we had already hinted that Dewey may be considering a prepackaged bankruptcy and that may have been the reason for retaining a famous bankruptcy lawyer, on April 21, Bloomberg reported Greenberg Traurig has talked to Dewey. While talks are happening with several other law firms for a takeover combined with a bankruptcy filing to protect lawyers the fact has also been reported by Wall Street Journal. Also, there is news that the Russia office of Dewey is touching base with several law firms. At this moment, the only thing that can truly save Dewey is loyalty from partners, for if the exodus continues Dewey would be left almost nothing to negotiate with.

In an emailed statement circulated on April 20, Jill Perry a spokeswoman of Greenberg Traurig said “We have had preliminary discussions relating to lawyers at Dewey LeBoeuf but we have made no commitments, have not reached agreements and have had no involvement in the firm’s financial situation or relationships.”

Angelo Kakolyris, a spokesman for Dewey released a statement claiming “We are considering various paths, including continuing to operate as an independent global law firm and a strategic combination with another leading law firm, the latter of which could take many forms … Nothing, however, at this point, is definitive.

Brennan, who is co-leading the team in Dewey sending out feelers, said “Typically the buyers of a law firm in financial difficulty are much larger and the debt and financial problems of the smaller firm are easily absorbed.”

According to industry sources, Dewey has already approached Shearman & Sterling LLP; Greenberg Traurig LLP, and Reed Smith LLP .

However, the Greenberg and Traurig spokeswoman has said, “We have a great deal of respect for Dewey LeBoeuf and their quality lawyers. It would be inappropriate for us to comment on market rumors.”

Dewey’s story continues to be one of overextension. Trying to build upon its meteoric success and revenue rise, Dewey entered into contracts with many high-profile lawyers to sustain the velocity of its growth to counter recession blues, but the plan failed.