Dewey Advisers Ask Court to Approve Partner Settlement in Flurry of Filings
Posted Aug 30, 2012 5:15 PM CST
By Rachel M. Zahorsky
In an effort to resolve the high-profile bankruptcy of Dewey & LeBoeuf, the firm’s advisers filed a flurry of motions Wednesday that requested court approval for a proposed $89 million settlement.
The formula presented in the filings requests money from 670 former partners in exchange for a waiver of Dewey-related liability, to swiftly deliver a “rough justice" that repays creditors owed some $250 million in secured debt and at least $300 million more in unsecured claims, according to the Dewey team, the American Lawyer reports.
"The debtor has sought, from the very start of this case, to achieve the most efficient, desirable, intelligent, and rapid solution possible for the resolution of partner issues," said Dewey bankruptcy counsel Albert Togut, who added that many of the now-defunct firm’s former partners agreed to the plan while still uncertain about loans from capital contributions to the firm.
U.S. Bankruptcy Judge Martin Glenn is scheduled to consider requests to hand the case to a trustee and to approve the partner contribution plan on Sept. 20, 2012, according to the American Lawyer report.