Dewey & LeBoeuf files for bankruptcy, fails to save firm

01:08, 30 May 2012

ASTANA. May 29. KAZINFORM Dewey & LeBoeuf LLP, the law firm that advised Los Angeles Dodgers LLC on its restructuring, filed its own bankruptcy after its chairman was ousted, almost all its partners quit and creditors began suing for unpaid bills.

Dewey, based in New York , listed debt of $245 million and assets of $193 million in a Chapter 11 filing yesterday in U.S. Bankruptcy Court in Manhattan .

According to Bloomberg, the firm, which had more than 1,300 attorneys in 12 countries after the 2007 merger of Dewey Ballantine LLP and LeBoeuf, Lamb, Greene & McRae LLP, now has 150 employees in the U.S. to wind it down, said Jonathan A. Mitchell, the firm's restructuring officer, in the filing. Dewey will be liquidated, he said.

Dewey & LeBoeuf "was formed at the onset of one of the worst economic downturns in U.S. history," said Mitchell, who works for Zolfo Cooper, in the statement. "These negative economic conditions, combined with the firm's rapid growth and partnership compensation arrangements, created a situation where the cash flow was insufficient to cover capital expenses and full compensation expectations."

Dewey hired Togut, Segal & Segal LLP as bankruptcy counsel. It's closing offices in Hong Kong , Beijing, Sao Paulo , London, Paris, Madrid, Frankfurt and Johannesburg. All U.S. offices have been closed or are closing. The firm is recovering equipment and artwork and securing client's records, according to the filing.

Economy

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