Daily News: August 17, 2012

WSJ: Ex-Dewey Partners Agree to ‘Clawback’

The Wall Street Journal reported that former partners from defunct law firm Dewey & LeBoeuf have agreed to give back at least $50 million in past earnings in exchange for immunity from lawsuits relating to the New York firm’s demise.

The Journal said if approved, the deal would mark an unusually early resolution of such “clawback” claims, which typically take years to resolve following a law firm’s failure.

The Journal said Joff Mitchell, Dewey’s chief restructuring officer and a managing director at the restructuring firm Zolfo Cooper, called the agreement with partners “a key milestone,” and said the deal could “deliver meaningful recoveries to creditors and let former partners put this behind them.”

Banks, bondholders and hundreds of trade creditors have potential claims against Dewey that total $560 million, according to ex-partners who were briefed last week by the firm’s estate, the Journal reported.

Previously on abfjournal.com:

Equipment Lessors Seek Protection in Dewey Bankruptcy, Monday, June 11, 2012

To read the full Wall Street Journal story, click here.