Legal News

Heller Ehrman Files for Bankruptcy; Remaining Employees May Not Be Paid
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

333 BushWhat’s left of San Francisco’s Heller Ehrman, which dissolved in November, has filed for Chapter 11 bankruptcy protection.

Former Heller partner Peter Benvenutti said the firm filed not because it is out of money, but because its main two creditors, Bank of America and Citibank, have refused to renegotiate the terms of a $5.7 million debt.

Last week a judge ruled that the firm’s San Francisco landlord, 333 Bush Associates, was entitled to a $48 million writ of attachment. A portion of Heller’s assets were immediately frozen, and Bush Associates became a secured creditor, ahead of dozens of unsecured creditors waiting in line for their money.

  
What
Where


Benvenutti says the firm is collecting money and expects to recover “tens of millions” in collections going forward. The firm has $3.7 million in cash, and expects to recover about $35 million in accounts receivable. The firm’s liabilities consist of the $5.7 million it owes to lenders, $10 million in other accounts payable and $4 million in taxes.

There are 54 employees left at Heller. The firm has no cash to pay them their regular salaries, and its main banks froze $6.5 million in the firm’s accounts upon learning that the firm might file for bankruptcy. The firm filed first-day motions with the court, asking to use cash collateral to pay the remaining employees, who have also been promised 100% retention bonuses in exchange for staying on.

The firm says it hopes to repay the bank lenders in the next three or four weeks.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Teams from Greenberg Traurig and Pachulski Stang Ziehl & Jones are bankruptcy co-counsel for Heller.





 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Deputy General Counsel / Senior Deputy General Counsel

USA-CA-Sacramento

Cal Cities Culture and Mission Cal Cities is dedicated to creating a collaborative and inclusive ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

SEARCH IN ARCHIVE

To Top