With just a day left for former Dewey & LeBoeuf partners to sign on to a proposed $90.4 million settlement deal aimed at helping repay Dewey creditors, the bankrupt firm’s advisers said Wednesday that only about one in four of the affected attorneys had agreed to participate. Despite the sluggish response, those advisers expressed confidence that enough former partners would step forward by Thursday’s deadline to ensure that the so-called partner contribution plan wins bankruptcy court approval.
The update came during a Wednesday afternoon meeting at the U.S. trustee’s office in lower Manhattan held to apprise unsecured creditors on the status of the Dewey bankruptcy. Over the course of the hourlong session, Brian Masumoto—an attorney with the U.S. trustee’s office responsible for monitoring the less-than-three-month-old Chapter 11 case—quizzed the firm’s advisers about the Dewey estate’s current financial condition, as well as what they think might happen if the partner contribution plan does not succeed.
