Dewey prepares for bankruptcy

While the firm may be ready to file by the end of the week, lawsuits continue to mount

It appears as though Dewey & LeBoeuf’s hiring of bankruptcy counsel Albert Togut in April really was foreshadowing for a final filing. Despite many assertions to the contrary by firm leadership, of which all save for one already has jumped ship, the Wall Street Journal reported Friday that the New York law firm is possibly readying for bankruptcy.

The Journal reports that Dewey is preparing for a potential bankruptcy protection filing in the next couple of weeks, which would initiate liquidation of the firm’s remaining assets. In the past week, Dewey has engaged restructuring firm Zolfo Cooper to help it collect receivables and pay back lenders and creditors.

Helping with this wind-down is Joff Mitchell, a senior managing director at Zolfo, who currently is acting as Dewey’s chief restructuring officer. Additionally, the Journal’s source noted that Togut would handle the bankruptcy filing.

Bankruptcy or not, buzzards already have begun to circle the still-breathing corpus. Last Monday, The Pension Benefit Guaranty Corp. (PBGC), which oversees U.S. private-sector pension plans and interjects to cover plans when employers cannot pay the promised benefits, sued Dewey.

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