Sign up for our free daily newsletter
YOUR PRIVACY - PLEASE READ CAREFULLY DATA PROTECTION STATEMENT
Below we explain how we will communicate with you. We set out how we use your data in our Privacy Policy.
Global City Media, and its associated brands will use the lawful basis of legitimate interests to use
the
contact details you have supplied to contact you regarding our publications, events, training,
reader
research, and other relevant information. We will always give you the option to opt out of our
marketing.
By clicking submit, you confirm that you understand and accept the Terms & Conditions and Privacy Policy
If approved, reports the Reuters news agency, the settlement would mark the first major recovery for Dewey’s creditors who are owed at least $315m, according to court documents.
Under the final proposed offer, the former partners had to contribute at least $50m by 5pm yesterday; they did so by 2.45pm. Reuters reports that according to a source close to the matter, at least 300 partners out of a possible 672 signed the agreement.
Fierce debate
The terms of the settlement have generated fierce debate for months, with Dewey’s lower-earning partners critical of a deal in which they were asked to make the same high repayments as top earners in management. But this deal might not be the final act in the settlement, as a committee representing former partners asked a federal bankruptcy judge to cast an eye over the deal before it is given court approval.
David Friedman, a lawyer representing the former partners, said: ‘Without such an investigation having been undertaken, there is no way that the debtor -- nor anyone else, including the court -- can formulate an informed view as to whether the [settlement] is within the realm of reasonableness.’
One former partner told the news agency he was ‘optimistic’ about yesterday’s announcement, despite having to pay a significant amount of money. ‘I would have been extraordinarily depressed if this threshold hadn't been reached,’ he said.
Email your news and story ideas to: [email protected]