This morning I attended the confirmation hearing for the Chapter 11 bankruptcy plan of Dewey & LeBoeuf. As I mentioned on Twitter a few minutes after leaving the hearing, Judge Martin Glenn confirmed the plan.
Under the plan, secured creditors will recover between 47 to 77 cents on the dollar, while unsecured creditors will wind up with 5 to 14 cents on the dollar. Secured creditors hold about $262 million in claims; total creditor claims, secured and unsecured, amount to about $550 million.
So that’s the bottom line. But what was the hearing itself like? Here are my observations, including a few photos — because bankruptcy court coverage is totally WWOP….
Some of our associate readers were nothappy with their latest bonuses. But hey, let’s look on the bright side: at least they got bonuses (assuming they made their hours).
The same can’t be said for former associates of the now-defunct Dewey & LeBoeuf. These associates sought to be treated as Dewey creditors in the firm’s bankruptcy case, but the effort isn’t going so well. And the same could be said of retired partners of D&L, some of whom could be paying money into the bankruptcy estate instead of getting money out of it….
* Everyone’s happy about the Dewey & LeBoeuf settlement except the Ad Hoc Committee and its LeBoeuf retirees, who called Judge Martin Glenn’s attempt to slap them down an “insult to injury.” [WSJ Law Blog]
* While South Carolina’s voter ID law wasn’t found to be inherently discriminatory, its enforcement was still blocked because people will be unable to get their sh*t together in time for the election. [Bloomberg]
* VP debate moderator Martha Raddatz’s 1991 wedding guest list has come under fire because Barack Obama was invited. Clearly there’s a conflict of interest worth arguing about here. [Washington Post]
* This man is nobody’s “butt boy”: Tom Keefe, the interim dean over at Saint Louis Law School, will be footing a $14,212 bill for his students in the form of ABA Law Student Division memberships. [National Law Journal]
* Strippers in California, Florida, Idaho, Kentucky, Texas, and Nevada will be making it rain, because they just scored a $12.9M class action settlement. That’s a whole lot of “college tuition”! [Courthouse News Service]
If you’re looking for the latest news on the imploding law firm of Dewey & LeBoeuf, check out Morning Docket. There are links about the ongoing criminal probe, an updated WARN Act notice, the firm’s claim that it is not “officially closed,” and a possible involuntary bankruptcy.
It might make sense for certain creditors to push the firm into bankruptcy, since under the status quo — i.e., the firm effectively liquidating itself outside of court — it’s not clear that similarly situated creditors are being treated equally. At the very least, there’s a lack of transparency, as bankruptcy lawyer Annette Jarvis of Dorsey & Whitney pointed out to Thomson Reuters. Jarvis represents one group of creditors that might be getting the short end of the stick: 51 retired partners from predecessor firm LeBoeuf Lamb, whose pensions could be in jeopardy.
As we’ve done in the past, let’s try to find some light amid the darkness. As one victim of the Dewey debacle told us, “Sometimes after you’re done crying about something, the best medicine is laughter.”
We agree. So, Dewey have a meme contest for you? Of course we do!
Keep reading for some sample Dewey memes, as well as the contest rules….
* What information Dewey know about the ongoing criminal investigation that’s being conducted by the Manhattan District Attorney’s office? From the sound of it, ex-chairman Steven Davis’s LeBoeuf may be cooked. [Am Law Daily (reg. req.)]
* Dewey know when to admit defeat? A spokesman for the failing firm has insisted that it’s “not formally closed.” Great, because that’ll certainly make it easier to prepare for the involuntary bankruptcy filing that’s in the works. [Reuters]
* Meanwhile, D&L amended its WARN notice with the New York State Department of Labor to raise its total employee count by 100, for a grand total of 533 — 433 of whom have been laid off thus far. [Bloomberg]
* “The defense wasn’t sexy, but the defense doesn’t want sexy. It wants an acquittal.” John Edwards’s legal team rested its case yesterday without calling any of the major players involved to testify. [Associated Press]
* Show me your papers: the California Supreme Court will be deciding whether a law license should be granted to an illegal immigrant who’s already been certified by the State Bar of California. [Los Angeles Times]
* Thank you, Jesus! Utah’s S.J. Quinney College of Law now has an additional $4M in its collection plate to put toward a new building thanks to the Church of Jesus Christ of Latter-day Saints. [National Law Journal]
Professor Joel P. Trachtman has developed a unique, practical guide to help lawyers analyze, argue, and write effectively.
The Tools of Argument: How the Best Lawyers Think, Argue, and Win is a highly readable 200-page book, available for about $10 in paperback or e-book. Chapters focus on foundational principles in legal argument: procedure, interpretation of contracts and statutes, use of evidence, and more. The material covered is taught only implicitly in law school. Yet, when up-and-coming attorneys master these straightforward tools, they will think and argue like the best lawyers.
For most attorneys, time spent managing the books is a necessary evil at best. Yet it is undeniably a crucial aspect of running a successful practice. With that in mind, we invite you to view or download a free webinar by Above the Law and our friends at Clio to learn how to better manage your finances.
Take this opportunity to learn what it takes to streamline your accounting and get the most out of your time. The webinar agenda:
● The basics of accounting for lawyers.
● How legal accounting differs from regular accounting.
● Report and reconciliation issues surrounding trust accounts.
● How to pick and integrate the best accounting tools for your practice.
● Steps to prepare your tax return for your firm’s income.
Do not miss this crucial chance to optimize your accounting practices. Save time and get back to billing!
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!