Facing opposition from creditors and the U.S. trustee’s office, Dewey & LeBoeuf’s bankruptcy advisers stated in a late Tuesday court filing that they have abandoned their plan to pay a $165,000 bonus to the firm’s former finance director, who is performing the same job for the defunct law firm’s estate.
In a September 13 filing, Dewey’s advisers had asked the court to approve the payment of bonuses totaling $220,000 to three estate staffers, including finance director Frank Canellas. The filing described the trio as critical to the Chapter 11 case’s ongoing operations and said they would be likely to abandon the estate absent financial incentives. Scott Ratner, an attorney representing Dewey, said in a Tuesday filing that the estate is withdrawing the bonus motion only as it relates to Canellas.
