A federal bankruptcy court ordered the approval of the liquidation plan for Dewey and LeBoeuf. This is a milestone for the closure of the collapsed law firm to pave the way for creditors to recover their losses.
The order of US bankruptcy Judge Martin Glenn, according to him, was in the 'best interests of the creditors and the estate.'
The firm once employed one thousand lawyers in twenty six different offices located all across the world. In 2012, it became the biggest law firm to file for bankruptcy protection. The decline of the firm was attributed to the compensation guarantees managing partners had made to fellow partners.
The proposed bankruptcy plan had four hundred fifty former partners agreeing to pay the estate at least US$71.5 million in exchange for a non litigation guarantee. These funds would then be paid to secured lenders such as JP Morgan Chase and Co., which has a US$262 million in claims against the firm.
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