Thelen Leaders Seek Vote to Dissolve, Hope to Close By Dec. 1
Posted Oct 28, 2008 3:08 PM CDT
By Martha Neil
Updated: Citing crippling economic factors and the impact of partner losses, the partnership council of Thelen recommended in a meeting today that the law firm's partners vote to dissolve.
The firm hopes to shut down by Dec. 1. Partners have seven days to vote on dissolution.
Thelen attributes its troubles to a number of economic factors, "including recessionary pressures and numerous partner departures over the past year, both of which have negatively impacted firm revenues," a news release from Thelen (PDF) notes.
As discussed in earlier ABAJournal.com posts, the firm has been struggling and failed at efforts to merge with several competitors. It has lost more than 200 lawyers since it was created in 2006 by the merger of Thelen Reid & Priest and Brown Raysman Millstein Felder & Steiner.
"Unfortunately, the most promising merger opportunity was derailed by conflicts, and all other full firm merger discussions terminated last week," the release notes.
The loss of so many partners caused the firm to be in default of its primary credit agreement, leaving the firm's bank in control of expenditures.
Thelen will be the second large firm to collapse in less than a month, following the dissolution of Heller Ehrman.
According to the release, the firm is working with its bank to secure a wind-down budget and pay its employees for 60 days under the federal and state WARN Acts. Salaries are likely to be funded through Nov. 30, but accrued vacation pay may not materialize.
ABAJournal.com: "Thelen Partners to Discuss Dissolution; Firm Chairman May Leave"
ABAJournal.com: "Thelen Down 200 Lawyers; How Many to Go?"