Dewey File for Bankruptcy? Yes -- It's About That Time
It was only a matter of time: Dewey & LeBoeuf has filed for bankruptcy.
DEWEY & LEBOEUF — MEMORANDUM — BANKRUPTCY FILING
From: Meyer, Janis
Sent: Tuesday, May 29, 2012 8:44 AM
To: US Administrative Personnel; US Paralegals; US Secretaries; US Personnel; US Senior Counsel; US Office Administrators; US Of Counsel
Cc: Stephen J. Horvath; Joff Mitchell
Subject: Please see attached
By now, many of you will have seen the news but we wanted you to hear it from us as well. Attached is a memo from Steve Horvath, Joff Mitchell and me as well the press statement released last night. We will arrange to have a meeting and/or group discussions as soon as possible. Thanks to all of you.
Navigating Financial Success by Avoiding Common Pitfalls and Maximizing Firm Performance
Janis M. Meyer
Partner and General Counsel
Dewey & LeBoeuf LLP
DEWEY & LEBOEUF — MEMORANDUM TO EMPLOYEES (ATTACHED TO EMAIL)
Memorandum To Dewey & LeBoeuf Employees
Date: Tuesday, May 29, 2012
From: Steve Horvath, Janis Meyer, and Joff Mitchell
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As you may have heard, Dewey & LeBoeuf LLP took the very difficult step last night of filing a Chapter 11 petition with the U.S. Bankruptcy Court for the Southern District of New York to facilitate the preservation of assets and the orderly wind-down of operations at the firm. (Attached is a copy of our Press Release announcing the filing.)
During the Chapter 11 proceeding, the dedicated staff of Dewey will continue to be one of the important elements to our successful wind-down. We have petitioned the court for permission to continue to pay salaries, benefits and Paid Time Off (PTO) in the ordinary course of business, for current employees, consistent with bankruptcy laws. We expect this permission to be granted within 48 hours following the filing.
Incentive plans are currently being crafted to benefit the employees who stay and help the firm manage this difficult situation. We are working diligently to put together a program that will address your questions and allow all employees to make plans moving forward.
Please also be assured that all amounts that Dewey has paid into any 401(k) plans are safe. Employee contributions will continue at your direction. Funds paid into 401(k) accounts as well as the firm’s qualified pension plans are held in trust and cannot be accessed by the firm’s creditors.
During the Chapter 11 case, we will continue our efforts to maximize our account receivable collection efforts and preserve our assets for the benefit of our creditors and our partners both past and present. We will work to keep you informed as this process moves forward.
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Additional information regarding the Chapter 11 filing can be found on this website, maintained by our claims agent, Epiq Bankruptcy Solutions LLC.
A toll-free information hotline has also been established at 855-890-7275.
Any media calls received should be forwarded to Thomas Mulligan or Brenda Adrian at Sitrick And Company, our communications consultants for this process, at (212) 573-6100.
Please feel free to let us know if you have any questions. Thank you for your continued commitment and dedication to Dewey & LeBoeuf and our clients.
DEWEY & LEBOEUF — PRESS RELEASE (ATTACHED TO EMAIL)
Dewey & LeBoeuf LLP Files for Chapter 11 Protection; Seeks Orderly Wind-Down of Business
NEW YORK (May 28, 2012) – The international law firm of Dewey & LeBoeuf LLP today announced that in an effort to preserve assets and wind down its business in the most orderly and efficient way possible, it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
The filing was made in Manhattan this evening, in U.S. Bankruptcy Court for the Southern District of New York.
Unlike most other Chapter 11 cases, this filing does not anticipate a return to business but rather a managed wind-down of affairs, followed by liquidation. Dewey & LeBoeuf expects the most significant portion of the process to be completed in the next few months. In the interim, the firm will be operating on a budget and according to a timetable to be determined by the Court.
The needs of all of the firm’s law clients continue to be served, mainly by former Dewey & LeBoeuf law partners who have moved on to other firms in recent months.
“We are proud of the dedication and professionalism that has characterized Dewey & LeBoeuf over many years, and we intend to bring the same focus to the unfortunate task of closing out our affairs,” said Stephen J. Horvath, Executive Partner.
The firm has petitioned the Court for permission to continue to pay salaries, benefits and Paid Time Off (PTO) in the ordinary course of business, for current employees, consistent with bankruptcy laws. We expect this permission to be granted within 48 hours following the filing. The firm will ask approximately 90 employees to remain on staff to assist in the wind-down.
Dewey & LeBoeuf continues to enlist the assistance of former partners and associates to help collect accounts receivable owed to the firm. It is in the interest of all parties to cooperate in the fullest possible recovery of such assets.
Dewey & LeBoeuf said that the 401(k) plans and qualified pension plans of its current and former employees and partners are held in trust and cannot be accessed by the firm’s creditors.
Dewey & LeBoeuf has consolidated its operations and intends to sharply reduce the size of the office space it occupies at its headquarters, 1301 Avenue of the Americas, New York, NY. Other domestic and foreign offices have been or are in the process of being closed. The firm will work with its landlords to help lessors of telecommunications, computer equipment, and furniture to recover and remove their property in a timely manner.
To ensure the preservation of legal files and other critical records, Dewey & LeBoeuf, as authorized and instructed by the Court, will remain in regular contact with vendors who have custody of or help to manage such records.
Dewey & LeBoeuf has retained Joff Mitchell of Zolfo Cooper LLC as Chief Restructuring Officer and Albert Togut of Togut Segal & Segal LLP as bankruptcy counsel.
The London and Paris offices of Dewey & LeBoeuf are operated through a separately incorporated UK entity, which was placed into administration on Monday. Administration is a UK legal process under court supervision, broadly similar to Chapter 11. The UK partnership is following broadly the same approach as that of Dewey & LeBoeuf in the US. Mark Shaw and Shay Bannon, business restructuring partners of BDO LLP, were appointed Joint Administrators of the U.K. entity.
Those wishing to follow the Chapter 11 proceedings should visit this website, maintained by the firm’s claims agent, Epiq Bankruptcy Solutions LLC.
A toll-free information hotline has also been established at (855) 890-7275.
Media Contact:
Sitrick And Company, New York: (212) 573-6100
Thomas S. Mulligan (thomas_mulligan@sitrick.com)
Brenda Adrian (brenda_adrian@sitrick.com)
