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Another Deal Reached in Howrey Bankruptcy Case
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Summary: Howrey LLP has struck another deal in its bankruptcy case, this time with Wiley Rein. 

Allan Diamond has struck another settlement for Howrey LLP, the D.C. law firm that went out of business back in 2011, according to The Wall Street Journal.

  
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Diamond was able to get a group of former leaders from Howrey and a law firm that advised Howrey on its bankruptcy to pay $1.85 million.

Wiley Rein LLP will send $1 million to the coffers of Howrey. Documents filed in U.S. Bankruptcy Court in San Francisco on Monday also show that Robert Ruyak, the firm’s former chairman, will also contribute $850,000.

To read more about Howrey, click here.

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The settlement still needs to be approved by a court, but the negotiations for this deal lasted more than one year.

Diamond works at Diamond McCarthy LLP in Texas. He accused the former advisers of Howrey with failing to act on a key issue surrounding the firm’s landlord in the early stages of the bankruptcy proceeding.



Wiley Rein claims that nothing went wrong with the handling of the lease, which turned into a multimillion-dollar liability when Howrey closed in March of 2011.

Wiley Rein will receive close to $30,000 of its settlement fee back so it can resolve the final bill submitted for the work it performed on the case prior to Diamond taking the reigns in October of 2011.

Wiley Rein did not comment on the deal. Ruyak also declined to comment.

To read more about Wiley Rein, click here.

Diamond said that the settlement “allows the trustee to bring this case much closer to conclusion.”

It all of the recent settlements reached by Diamond are approved by a judge, the firm’s creditors could be in line for a nice payday. Diamond previously said that he wants to have a creditor-repayment plan in place prior to the end of 2015.

The largest creditor of Howrey, Citibank, has already received a $37 million payment.

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Image credit: Howrey LLP



 

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