Report: Deadline Looms for Dewey to Renegotiate $100M Credit Line; Two More Partners Leave
Updated: Dewey & LeBoeuf owes about $75 million to a syndicate of bank lenders, money drawn on its $100 million credit line, according to a published report.
Now the law firm is facing an end-of-the-month deadline to renegotiate the credit line, the Wall Street Journal (sub. req.) reports. The $75 million debt is about $40 million higher than previous reports in the newspaper. The firm also owes at least $125 million to insurers that bought a private bond, the story says. The first payment is due in 2013.
The Wall Street Journal relies on information from “a person familiar with the matter.” The article also reports that the firm’s New York lawyers were told they will have to use their own personal or corporate credit cards, rather than a corporate account, to pay for car reservations.
Meanwhile, two more partners have left Dewey. Washington, D.C., project finance partner Gregory Smith is moving to Allen & Overy, the Am Law Daily reports. And London tax partner Fred Gander is jumping to accounting firm KPMG, Legal Week reports.
At least 71 Dewey partners have left since the beginning of the year.
Updated at 7:45 a.m. to include news of Gander’s departure.
