Dewey Proposals to Hire Advisers Assailed by Trustee
Law firm Dewey & LeBoeuf LLP was assailed by the U.S. trustee who supervises bankruptcies over nine proposals to hire advisers, including the law firm of Togut Segal & Segal LLP, and a six-week budget of $7 million for paying the firms.
Proskauer Rose LLP may have conflicts as it hired former Dewey lawyers, public relations firm Sitrick & Co. may not be needed for bankrupt Dewey’s liquidation, and several firms’ duties would overlap, Tracy Hope Davis said in a filing in U.S. Bankruptcy Court in Manhattan yesterday.
Dewey’s hiring applications don’t accord with bankruptcy rules and don’t disclose enough essential information, the trustee said. A violation of limits for professional fees could also cut off Dewey’s access to use of funds made available by lenders for the liquidation, Davis said.
Albert Togut, Dewey’s lead bankruptcy adviser, and Michael Sitrick, a spokesman, didn’t immediately respond to e-mails seeking comment on the trustee’s objections sent after normal business hours.
The case is In re Dewey & LeBoeuf LLP, 12-12321, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Linda Sandler in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David E. Rovella at email@example.com
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.