Proposed Dewey settlement extended to August 7

Thu Jul 19, 2012 10:27pm EDT
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By Casey Sullivan

NEW YORK (Reuters) - The deadline for former partners of bankrupt law firm Dewey & LeBoeuf to reach a settlement has been extended until August 7, according to a former partner who received a copy of an email notice issued by Dewey's restructuring officer.

Dewey, once one of the largest law firms in the United States, is seeking to reclaim nearly $104 million from former partners in return for dropping potential claims against them related to the bankruptcy.

The deadline had been July 24.

"According to the note, they've had a ton of emails come in," said the former Dewey partner, who spoke on the condition of anonymity to preserve relationships with fellow partners.

"It's hard for people to make a decision without having a lot of these questions responded to."

The restructuring officer for the Dewey estate, Joff Mitchell, could not immediately be reached to comment on Thursday night.

Dewey & LeBoeuf collapsed in May amid a raft of partner defections and a high debt load. A firm that began the year with 1,040 lawyers in 26 offices ended with hundreds of employees laid off. Dewey owes creditors more than $315 million.

As part of the settlement, partners were asked to pay between $25,000 and $3 million, depending on how much they earned over the past two years.   Continued...