Dewey & LeBoeuf granted approval to use cash collateral until July 31

By Sahara Marte

New York, June 13 - Dewey & LeBoeuf LLP received approval for continued use of cash collateral through July 31 at a hearing in the U.S. Bankruptcy Court for the Southern District of New York.

The company agreed with creditors to create a collateral budget of $31.5 million for the next six weeks. The money will fund salaries and benefits for 90 employees, rent for its remaining office space and technology for the client database.

"We think it will be beneficial to everyone," the company's attorney told the court when asked about allocation of collateral cash over the next six weeks. "We know what a law firm meltdown looks like. There is an incentive to get this done."

Dewey & LeBoeuf must return to a hearing on July 9 to consider pension security and to discuss the budget two weeks prior to its expiration with the judge.

Dewey & LeBoeuf is an international law firm based in New York. The company filed for bankruptcy on May 28 under Chapter 11 case number 12-12321.

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