Dewey & LeBoeuf to wind down, distribute proceeds via liquidation plan

By Caroline Salls

Pittsburgh, Nov. 26 - Dewey & LeBoeuf LLP filed its plan of liquidation and related disclosure statement on Nov. 21 with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the primary purpose of the plan is to allow it to complete the orderly wind down of its affairs.

Under the plan, substantially all of Dewey & LeBoeuf's assets will be liquidated. Related proceeds and the remainder of the company's assets will be distributed through a liquidation trust and a secured lender trust.

Treatment of creditors under the plan will include the following:

• Non-tax priority claims will be paid in full in cash;

• Holders of secured lender claims will receive a share of secured lender trust interests and liquidation trust secured lender interests. In addition, the lenders' secured lender deficiency claim will be allowed and treated as general unsecured claims;

• Holders of other secured claims will either be paid in full in cash or receive the estate's right, title and interest in the collateral securing the claims;

• Holders of general unsecured claims will receive a share of liquidation trust general unsecured creditor interests;

• Insured malpractice claims will be paid solely from the proceeds of any applicable malpractice policy;

• Holders of subordinated claims will receive no payment unless all other claims are paid in full; and

• Interest holders will receive no distribution.

The disclosure statement hearing is scheduled for Jan. 3.

Dewey & LeBoeuf, a New York-based international law firm, filed for bankruptcy on May 28. Its Chapter 11 case number is 12-12321.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.