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According to court documents filed this past Friday, eight professional services firms are working on the bankruptcy case of Dewey & LeBoeuf LLP. The law firm has asked the court to approve the retainer for three law firms, a public relations firm, two restructuring firms, a collections agent and a consultant. All of these entities have been hired to help the firm investigate claims against partners and former partners. Some firms charge $935 per hour while others seek retainers in advance totaling $150,000.
The consulting firm advising Dewey on a settlement with its former partners, Goldin Associates LLC, is helping the firm prepare for clawbacks for past compensation. Albert Togut, the bankruptcy lawyer for the firm, has said that the firm is seeking a resolution as soon as possible. According to court filings, the Goldin firm jumped into the fray almost two months ago:
The Goldin Firm was engaged on or about April 22, 2012 to assist Dewey and its counsel to identify and evaluate potential claims against partners and consider options for settling any such claims. Subsequent to that date, Dewey has paid a total of $660,000 to Goldin, of which less than $115,000 remains as retainer.
Goldin was also present with the firm earlier in the year as partners began leaving in mass exodus:
For approximately four weeks from the end of January 2012 to the end of February of 2012 the Goldin Firm was engaged by Dewey to perform financial advisory services.
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Dewey is hoping to use the services of Development Specialists Inc., the first restructuring firm it hired, in order to supplement services from its other bankruptcy advisor, Zolfo Cooper LLC. The firm has also requested that it be allowed to retain the crisis communications firm of Sitrick and Co., which was brought on in March to help with adverse publicity and media reports. Sitrick and Co. charges rates by the hour ranging from $185 to $895, in increments of one-tenths of an hour. The firm is not owed any money by Dewey. The following is a statement released by Sitrick and Co. CEO Michael Sitrick:
[A] number of constituency groups and stakeholders, including employees, clients, vendors, trade and other creditors, lenders, partners, governmental entities, the media and the general public will be interested in the Debtor’s bankruptcy proceeding. The cooperative participation of many of these persons and entities will be necessary for the Debtor to successfully wind down in chapter 11 and manage its bankruptcy estate. Sitrick will be able to assist the Debtor in protecting, retaining, and developing the goodwill and confidence of these constituencies and stakeholders.
