Daily News: June 4, 2012

Dewey Update: Interim Approval to Use Cash, Committees Named

U.S. Bankruptcy Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York has granted interim permission for Dewey & LeBoeuf to use its cash collateral to finance the wind-down of the company, an article on thedeal.com said.

A hearing for final approval of the financing is slated for June 13.

The wind-down of the company includes the liquidation of its assets, the closing of its offices and the disposing of former clients’ files, among other things. Partners Janis M. Meyer and Stephen J. Horvath III are overseeing the liquidation.

According to court documents, the firm had a $100 million credit facility that was to mature on April 16 but was extended to May 18. J.P. Morgan Chase Bank, Citibank and Bank of America were lenders on the loan. The company also owes more than $76 million on a secured credit facility and $150 million of notes. J.P. Morgan Chases is the collateral agent for the notes.

Separately, Bloomberg and Reuters articles noted that a three-person committee of unsecured creditors and a four-person committee of the firm’s former partners will oversee the company’s bankruptcy proceedings.

U.S. Trustee Tracy Hope Davis appointed the committee of former partners including: John Kinzey, John Campo, who is now employed with law firm Troutman Sanders, David Bicks and Cameron MacRae, who are now partners at Duane Morris, to the committee

The unsecured creditors committee includes: staffing firm HireCounsel, car service Inta Boro Acres and leasing company Fidelity National Capital, a part of Winthrop Resources. According to court documents, Winthrop Resources, U.S. Bank Equipment Finance and SunTrust are owed a combined $46.8 million in the Dewey’s bankruptcy case. Winthrop Resources, U.S. Bank Equipment Finance and SunTrust are owed $35.5 million, $7.7 million and $3.5 million, respectively.

To read thedeal.com article in its entirety, click here.

To read the Reuters article, click here.

Previously on abfjournal.com:

Dewey & LeBoeuf Files for Chapter 11; Seeks Orderly Wind Down, Published Tuesday, May 29, 2012