http://au.legalbusinessonline.com/news/dewey-and-leboeuf-shutters-uae-offices-amid-mass-exodus/108327
UAE office closed.....
http://uk.reuters.com/article/2012/05/04/us-dewey-idUKBRE8431GZ20120504
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Defections from the firm decimated its overseas offices on Friday, with a wave of departures in Britain,
Germany, Kazakhstan, UAE and Russia.
Dewey's options could include an out-of-court wind-down or a bankruptcy, whether voluntary or forced by its creditors, bankruptcy experts said.
Earlier this week, Dewey denied any plans to file for bankruptcy. Industry experts say a filing would be expensive and unlikely to salvage the firm, but could provide an efficient legal framework for Dewey to collect receivables from departed partners.
People who are owed money by Dewey have already begun seeking to sell their claims to third parties on a secondary market at a heavy discount, said Kevin Starke, a bankruptcy analyst with CRT Capital Group, a brokerage that specializes in distressed securities.
When businesses are insolvent or close to it, their stakeholders, fearing they will not be paid fully or on time, commonly sell their claims at a discount to institutional buyers in an effort to recover some money.
In Dewey's case, sellers will likely include trade vendors, suppliers and other service providers who may have receivables against the firm, Starke said.
"A market for receivables is shaping up around 10-to-15 cents on the dollar," he said.
and from Dealbook.....
Dewey & LeBoeuf told employees Friday that the law firm might close and that they could lose their jobs, the first acknowledgment from management of a possible dissolution.
“As you are undoubtedly aware, Dewey & LeBoeuf has unexpectedly experienced a period of extraordinary difficulties in the last few days,” Steven J. Horvath III, the firm’s executive partner, wrote in an e-mail memo. “Although we continue to pursue various avenues, it is possible that adverse developments could ultimately result in the closure of the firm, which would result in the termination of your employment.”
Dewey, which at its peak in 2007 employed 1,300 lawyers and was one of New York’s largest firms, has been devastated in recent weeks. More than 100 of its 300 partners have defected to other firms. The exodus began after compensation was sharply cut because of disappointing financial results and an onerous debt load.
In recent days, the firm began to wind down its operations, shutting essential services like the copy center and mailroom. On Friday, job placement firms were brought in to advise employees.
Many of the partners who remained with Dewey completed their moves to new employers. Others organized their documents to send to records; several said they planned to come in over the weekend to pack up boxes. At least one made a court appearance on behalf of a client.
The notification on Friday brought some measure of relief for Dewey’s employees, who in recent days had said they were anxious about the lack of communication from management. Mr. Horvath, who wrote Friday’s grim dispatch, could be seen smoking outside Dewey’s headquarters during the past week.
Formerly a corporate partner in the firm’s London office, Mr. Horvath, was moved to New York by Dewey to help in the firm’s restructuring. He recently took control of the firm’s day-to-day business operations, replacing Stephen DiCarmine, a nonpracticing lawyer who had previously served in that role.
Mr. DiCarmine was terminated this week. He has retained Edward Little, a criminal defense lawyer, to represent him, according to two people with direct knowledge of the matter.
There has been no accusation of wrongdoing against Mr. DiCarmine. Mr. Little declined to comment.
News of Mr. Little’s hiring was earlier reported by Reuters.
Mr. DiCarmine worked closely with Steven H. Davis, the firm’s former chairman. The Manhattan district attorney is investigating allegations of wrongdoing by Mr. Davis, who was ousted last week. A lawyer for Mr. Davis, Barry Bohrer, has said his client had not engaged in any misconduct.
Friday’s notice by Dewey was made pursuant to the Worker Adjustment and Retraining Notification Act, a federal law that requires 60 days’ notice before laying off a large number of employees.
“On behalf of the firm, we want to thank you for your support and dedicated service,” Mr. Horvath wrote in the e-mail.
The firm’s office of the chairman, a four-partner team in charge since replacing Mr. Davis, had previously denied reports that Dewey had plans to close or file for bankruptcy.
Legal experts say that Dewey is now effectively under the control of its banks, and its leadership is doing all it can to preserve whatever value is left in the firm to pay back its lenders and creditors. If it abdicated those responsibilities, even in the firm’s final days, Dewey’s partners could be subject to additional liability claims in a potential bankruptcy filing.
Here is a copy of the dispatch sent to employees in the United States.
To: All US Personnel
As you are undoubtedly aware, Dewey & LeBoeuf LLP has unexpectedly experienced a period of extraordinary difficulties in the last few days. Although we continue to pursue various avenues, it is possible that adverse developments could ultimately result in the closure of the Firm, which would result in the termination of your employment.
The attached letter provides more detail.
On behalf of the Firm, we want to thank you for your support and dedicated service.
Steve
Stephen J. Horvath
Executive Partner
Dewey & LeBoeuf LLP
and.....
Morgan Lewis to hire Dewey Moscow and Almaty offices and three more partners in City
Author: Suzi Ring, Friederike Heine
04 May 2012 | 11:32
Dewey & LeBoeuf is set to see further departures from its European network, with its Moscow office defecting to Morgan Lewis & Bockius, which is also set to hire an additional three partners in London. Meanwhile a German corporate finance team is leaving to launch a Frankfurt office for McDermott Will & Emery.
The Moscow team, which includes six partners, will launch a local office for Morgan Lewis, with all staff in the office understood to have been offered a job by Morgan Lewis although no-one has formally resigned. In addition to the Moscow launch, Morgan Lewis is also set to take Dewey's Almaty office with the hire of its sole partner Aset Shyngyssov.
The firm has also agreed to hire a further three partners from Dewey in London, with City banking and finance partner Bruce Johnston set to join alongside Amanda Jennings (finance) and Amy Comer (corporate). Johnston had previously been planning to join Akin Gump Strauss Hauer & Feld in London. None of the three partners have resigned from Dewey yet.
News of London hires comes after Legal Week reported yesterday (3 May) that Dewey's London managing partner Peter Sharp and litigation partners David Waldron - who co-chairs both the firm's litigation group outside of the US and the energy litigation practice group - and Nick Greenwood are also joining Morgan Lewis in the City.Sharp, whose last day at Dewey is today (4 May), is also intending to bring across five associates and as many trainees as possible.
Separately, a corporate finance team in Frankfurt has agreed to launch a local office for rival US firm McDermott. The team includes corporate finance partners Philipp von Ilberg and Joseph Marx, as well as local partner Martin Kniehase, and a group of Frankfurt-based lawyers.
The remaining Frankfurt partners are expected to join a range of US firms.
Confirmation of the Moscow team's defection to Morgan Lewis ends weeks of speculation about the office's future, with the base previously linked with White & Case, King & Spalding and Baker Botts.
Departures at Dewey have been escalating by the day, with the embattled firm's London arm this week appointing a crisis management committee to assess options for an orderly wind-down of the business.
Meanwhile yesterday saw the news that the firm is losing an eight partner team to White & Case led by
heavyweight US M&A partner Mort Pierce. The firm's Beijing office, which according to the website has three partners, is understood to be in talks with a number of firms, including Winston & Strawn. Dewey's Italian and Warsaw offices are also considering their future.
and...
http://www.legalweek.com/legal-week/news/2172303/dewey-brink-city-crisis-committee-bdo
London partner committee thrashes out details of UK wind-down
The fate of embattled Dewey & LeBoeuf’s City arm looked sealed this week as a newly-appointed London crisis management committee began assessing options for an orderly wind-down of the business.
A BDO team, understood to include professional practices specialists, is advising members of the UK limited liability partnership (LLP) as they examine the business’ balance sheet and decide whether they can avoid formally filing for administration by winding down the business.
Legal aspects of the potential liquidation of the UK LLP (which also includes Dewey’s Paris operations) are currently being handled in-house by European restructuring head Mark Fennessy, although the firm could appoint an independent law firm in due course. Maurice Turnor Gardner is also understood to be advising in relation to the matter.
Thirteen Dewey London partners voted on Monday (30 April) to create a steering group to oversee the closure of the UK LLP, comprising Fennessy, London managing partner Peter Sharp, finance partner Bruce Johnston, UK tax head Judith Harger and restructuring partner Hazel Miller. Partners confirmed the office will not continue.
However, Sharp has
since handed in his notice from the firm, and is joining Morgan Lewis & Bockius with fellow London partners David Waldron and Nick Greenwood. His last day at the firm is today (4 May).
The crisis team has set aside funds to pay staff for May but would not comment on what will happen after this point.
Monthly partner drawings for the firm globally are understood to have been paid out yesterday (3 May) but not to partners behind with issuing bills to clients.
Two partners told Legal Week that to complete an orderly wind-down of the business, the UK LLP would have to claim all outstanding receivables from clients and pay its creditors and its employees, as well as disposing of all fixed assets. In this scenario, the firm would aim to pay its employees’ wages as well as the redundancy package detailed in their individual employment contract.
At the end of March, the London office had 112 lawyers including 35 partners, as well as 87 support staff. Staff in the office had not been formally notified of the firm’s intention to wind-up the business as Legal Week went to press; however, the firm has engaged recruiters with a view to helping support staff find new employment.
As the UK LLP operates separately to the US arm, any decision about its future can be made regardless of whether the US arm files for bankruptcy or bankruptcy protection.
One London partner said: “If the US banks [which include Citi] go into aggressive recovery mode, the London partners will become partially liable for the debt. Despite the fact that we can orchestrate a wind-down independently of New York, our fate is linked to the outcome of the debt renegotiations with the US lenders.”
The UK LLP’s most recent accounts, which cover the period leading up to 31 December 2010, show the UK LLP had annual commitments on property leases of £2.3m, with the leases due to run for at least five years from that point.
The new London management is set to meet with its Mincing Lane landlord next week to discuss its obligations.
Smith & Williamson’s national head of assurance and business services, Giles Murphy, said: “The fact that this is being played out in the public domain means that its assets – principally, amounts due from clients – may not be as recoverable as they first thought, and creditors – such as the landlord of the firm’s London property – may seek early settlement of their liabilities.”
The London moves came as Dewey this week saw a host of high profile partner departures, including US corporate heavyweight Morton Pierce, who is joining White & Case alongside a team of seven partners including New York corporate partner Denise Cerasini. Meanwhile international offices including Germany, Moscow and Italy were all considering their future moves.
Commenting on his move Pierce said: "White & Case is a great fit for our practice. The quality global platform, with strong New York and London offices, is extremely attractive to us, and I know will be attractive to our clients."
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