Good News for Creditors: Dreier Firm Has $100M-$500M, Owes Up to $50M
Although the Dreier law firm apparently is significantly behind on numerous bills, including its rent, the firm’s Chapter 11 bankruptcy filing (PDF) on Tuesday contained good news for creditors.
In it, receiver Mark Pomerantz estimates that the law firm has between $100 million and $500 million in assets and $10 million to $50 million in debt, reports the New York Law Journal in an article reprinted in New York Lawyer (reg. req.).
The firm says it expects funds to be available to pay unsecured creditors, which are estimated to number between 200 and 1,000, the article states.
Among those who are asking for payment are the law firm’s landlord, which claims it is owed more than $900,000, and Westlaw, which has tendered a bill of $441,000. Lehr Construction Corp., which has been working to renovate the interior of the firm’s offices, is allegedly owed $400,000.
Legal recruiters also are claiming hefty unpaid bills, reports the Am Law Daily: Mark Bruce International is seeking $230,000, Mestel & Co. is seeking $150,000 and Strategic Workforce Solutions is seeking $86,350, according to court records.
As discussed in earlier ABAJournal.com posts, the law firm imploded earlier this month after its founder and sole equity partner, Marc Dreier, was arrested in Canada and by federal authorities in New York and criminally charged in both jurisdictions. He is accused of having stolen $390 million, largely by tricking hedge funds into “investing” in worthless forged debt instruments.
