Anatomy of a Dissolution: So Much For 60 Days WARNing

“Non-essential” Heller Ehrman people, it’s time to pack it up:

It is with a great deal of regret that we write to inform you that we will not be able to pay you for work performed after today, Friday October 10 and, as a result, that your employment with the firm will be terminated today. We also expect that we will need to inform other employees over the following two weeks that we are unable to pay them any further and will need to terminate their employment. We do expect that we will be able to continue to pay some people for a longer period of time. Regular paychecks will be provided today but because of the volume of final paychecks we will need to prepare, it may take a few days to get your final paycheck to you. We know this is important to you but please be assured your colleagues in the Payroll Department will be working as hard and as quickly as they can to get you your paycheck.

These actions have been forced upon us by the two banks — Citibank and Bank of America — that control our ability to make any payments. Generally, they have refused to pay employees who we cannot convince them are necessary (as they define it) for the wind down efforts. We understand how upsetting this news is. You should continue your activities to serve clients, including, where applicable, to bill your time. Time billing and client service are two of the criteria the banks are examining in our continuing negotiations with them to maintain an orderly transition.

We want to thank you for your professionalism and forbearance to date and ask you to continue to proceed with the same degree of professionalism you have demonstrated during your valuable service to the firm and to its clients.

The Dissolution Committee

The rest of the bad news, after the jump.


We’ve been able to confirm the claim that the entire Madison, WI office is becoming a Perkins Coie outpost:

Dear All,

Today is the Madison office’s last day as part of Heller Ehrman. Come Monday, we will be the new Madison office of Perkins Coie. Same people, same offices, new sign in the lobby, great firm. Keep in touch.

Meanwhile, a tipster is telling us that everybody remaining in Heller’s Seattle office, essential and non-essential, has been let go.

This news comes on the heels of Orrick’s acquisition yesterday of 27 Heller partners. Legal Pad has the names of all the partner refugees.

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Any lifeboats for the non-essentials? Hopefully some of these people can at least try to recuperate over the long weekend.

Orrick Recruits 27 Heller Ehrman Partners [Law.com]

Naming Names: Orrick’s Heller Recruits [Legal Pad]

Earlier: Hot Document:The Official Heller Ehrman Dissolution Plan

Prior ATL coverage of Heller’s Dissolution

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