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PBGC Faults Dewey Plan to Hire Proskauer, Keightley Law Firms

The Pension Benefit Guaranty Corp., Dewey & LeBoeuf LLP’s largest unsecured creditor, faulted the defunct law firm for a plan to hire Proskauer Rose LLP and Keightley & Ashner LLP at a cost of $610,000 in the first nine weeks.

The two firms’ work “to date has been unnecessary, has not affected or benefited the bankruptcy estate, and has been duplicative of each other’s work,” the PBGC said in a filing in U.S. Bankruptcy Court in Manhattan today. Dewey, which owes secured lenders more than $225 million, has asked a judge to approve the hiring of around 11 firms to help it liquidate, according to filings.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: Charles Carter at ccarter12@bloomberg.net

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