Law firm Dewey & LeBoeuf LLP has announced that in order to preserve its assets and wind down its business in an orderly way, it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
The filing was made in Manhattan in the U.S. Bankruptcy Court for the Southern District of New York.
Unlike most other Chapter 11 cases, this filing does not anticipate a return to business, but rather a managed wind-down of affairs, followed by liquidation.
The firm says it expects the most significant portion of the process to be completed in the next few months. In the interim, the firm will be operating on a budget and according to a timetable to be determined by the court.
The firm says the needs of all of its clients continue to be served, mainly by former Dewey & LeBoeuf law partners who have moved on to other firms in recent months.
‘We are proud of the dedication and professionalism that has characterized Dewey & LeBoeuf over many years, and we intend to bring the same focus to the unfortunate task of closing out our affairs,’ says Stephen J. Horvath, executive partner.
The firm has petitioned the court for permission to continue to pay salaries, benefits and paid time off in the ordinary course of business for current employees, consistent with bankruptcy laws. The firm will ask approximately 90 employees to remain on staff to assist in the wind-down.
Dewey & LeBoeuf has consolidated its operations and intends to sharply reduce the size of the office space it occupies at its New York headquarters. Other domestic and foreign offices have been or are in the process of being closed.