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Ex-Dewey partners agree to cough up extra $20m
Former partners of bankrupt New York law firm Dewey & LeBoeuf will pay at least $70 million as part of a proposed settlement, eclipsing the $50m that they agreed to pay just at the end of last week.
That'll be 20 million more, please
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The settlement, reports the Am Law Daily, is designed to help repay creditors some $250m in secured debt and at least $300m more in unsecured claims.
In an e-mail to former partners, Dewey’s chief restructuring officer Joff Mitchell said: ‘We are still reviewing submissions and expect to be able to confirm a final number next week.’
Liability waiver
The settlement required partners to contribute between $5,000 and $3.5m each to reach the goal. In return, they will receive a waiver of Dewey-related liability. Former chairman Steven Davis was not offered the chance to settle; as the Dewey estate has made it clear they intend to pursue claims against him.
In a statement, Mr Mitchell called the settlement's apparent success a ‘key milestone we are pleased to have reached,’ adding that ‘an early settlement that can deliver meaningful recoveries to creditors and let former partners put this behind them.’
