Biglaw

Stroock Working On Wind Down, Trying To Keep Firm Out Of Bankruptcy

This mess started when the firm lost its bankruptcy group, and now the firm doesn't want to end up in bankruptcy.

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Shop Closed Sign On Wooden BackgroundIt’s the end of an era for Stroock & Stroock & Lavan, a firm that existed as an elite among its peers for nearly 150 years before disaster struck. In the wake of losing more than half of its partners to Hogan Lovells, the firm has announced its plans for a dissolution.

What’s the next step for a firm trying to hold it all together before the end officially comes? The American Lawyer has some of the details:

The dissolution process of the 147-year-old New York-based firm will begin once the partnership at Hogan Lovells approves the pending Stroock hires, according to sources familiar with the negotiations. Law.com has reported that the hires are subject to a partnership vote at Hogan Lovells set to close on Tuesday, Oct. 31.

After that lateral move, a wind-down committee will oversee Stroock’s dissolution or potential bankruptcy filing.

But whether the firm lands in bankruptcy is unknown at this point, sources said, as Stroock will be dealing with both preferred and non-preferred creditors. Its full liabilities are unclear at this point, sources said.

Stroock will likely attempt to avoid bankruptcy at all costs, perhaps in the hope that the firm doesn’t become the next posterchild for law firm mismanagement. Hopefully Stroock doesn’t strike out and wind up in bankruptcy court while it’s winding down.

As Stroock Plans Its End, Wind-Down Committee to Examine Liabilities [American Lawyer]

Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.

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