Heller Ehrman announced its dissolution in September of 2008. The firm was required to give employees 60 days paid notice under the WARN act, but they couldn’t even get that right. Many associates and staff had their pay terminated before their 60 days were up. And many more employees were not compensated for their unused vacation time and other expenses.
These people have had to wait in a long line to get their piece of the steaming Heller carcass.
But the wait is almost over, though the payout will be underwhelming. Take heed, Howrey folks. We could be looking at your future….
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Am Law Daily reports that Heller’s unsecured creditors are finally about to get paid:
Unsecured creditors of Heller Ehrman are expected to finally experience a payday in September, nearly three years after the San Francisco firm filed for bankruptcy, according to sibling publication The Recorder (subscription required).
Thomas Willoughby, counsel to the committee of unsecured creditors, filed a motion Monday requesting approval of the payments. The creditors should receive between 24 cents and 33 cents on the dollar, Willoughby told the Recorder, for a total amount of between $21 million and $28 million. Willoughby, a partner with Sacramento boutique Felderstein Fitzgerald Willoughby & Pascuzzi, also represents the unsecured creditors in the Howrey bankruptcy.
“Between 24 cents and 33 cents on the dollar”? Dudes, take your vacation time. All of it. An unused vacation day is a little packet of freedom you’ve given back to your firm at a huge discount.
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The payments are expected to begin in September. Three years later, the money will probably just serve as a reminder to the unsecured creditors of their painful association with Heller Ehrman.
Heller Estate Close to Paying Former Employees and Unsecured Creditors [Am Law Daily]