Posted Apr 25, 2012 11:35 am CDT
Updated: Dewey & LeBoeuf is seeking to sublet up to a third of its office space at its New York City headquarters at 1301 Sixth Avenue, according to a published report.
Crain’s New York Business reports that Dewey has listed the property for sublease with Newmark Grubb Knight Frank. Initially the law firm is seeking to sublease three or four floors, which average 40,000 square feet each. In all, the firm leases about 474,000 square feet in the building, where it is the largest tenant.
Meanwhile, top lawyers at Greenberg Traurig and Dewey & LeBoeuf are still talking about a possible deal.
The Wall Street Journal (sub. req.) has the report on the talks, based on anonymous sources. The story says top Greenberg partners are reaching out individually to key Dewey partners, with many of the calls taking place last weekend.
An unnamed Dewey partner told the Wall Street Journal that the calls between Greenberg and Dewey partners were “social” and “highly introductory” without discussion of financial terms or specifics of a merger structure. Greenberg issued a statement on Monday saying it has had “preliminary discussions relating to lawyers at Dewey.”
If a merger takes place, it could be preceded by a prearranged bankruptcy filing that would allow the merger partner to combine with Dewey without taking on its debt.
At least 71 Dewey partners have left the firm since the beginning of the year. Dewey is reportedly facing an end-of-the-month deadline to renegotiate its $100 million credit line. The firm has drawn $75 million on the credit line, the Wall Street Journal previously reported.
Updated to include information on Dewey’s effort to sublease its space.