Thelen Files for Chapter 7 Bankruptcy, Claims Up to $100M in Liabilities
The dissolved law firm Thelen has filed for Chapter 7 bankruptcy, saying its lender Citigroup is no longer willing to advance funds to wind down its operations or to fund a Chapter 11 reorganization.
The petition for a complete liquidation says the firm has between $10 million and $50 million in assets and between $50 million and $100 million in liabilities, Reuters reports.
The firm filed the petition in U.S. Bankruptcy Court in Manhattan. The filing says Citigroup has a $7.2 million secured loan that will likely prevent “any meaningful payment” to unsecured creditors.
Thelen is represented by Latham & Watkins lawyers Mark Broude and Peter Gilhuly, according to the petition. Gilhuly advised Brobeck, Phleger & Harrison on its dissolution.
The firm’s statement of financial affairs (PDF) filed with the court lists payments of more than $1.6 million to Latham for a retainer and services in advance of the bankruptcy filing.
Thelen partners voted to dissolve the firm last November after suffering partner losses and taking on heavy debt in a 2006 merger.
