Dewey & LeBoeuf Bankruptcy Bills Total $23.6 Million

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Who would have thought bankruptcy would be so expensive? The teams of advisors that helped law firm Dewey & LeBoeuf navigate its way to Chapter 11 bankruptcy are now seeking payment from the troubled firm, to the tune of $23.6 million.

The 10 different firms and advisory groups have begun to request payment for the services from Dewey & LeBoeuf now that the firm has successfully filed for bankruptcy. The firm initially began bankruptcy proceedings in May 2012, and the bankruptcy became effective March 22. The $23.6 million was billed for services rendered during the first period of the bankruptcy proceedings, from May to October, 2012.

  

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Among the 10 groups that are owed money by Dewey & LeBoeuf are law, restructuring, and financial firms. The single largest debt owed is to the firm Togut, Segal & Segal, who have submitted a bill for $8.91 million, for what a lead partner described as creating a wholly new bankruptcy plan for Dewey & LeBoeuf. That plan, according to AM Law, includes provisions that former Dewey & LeBoeuf partners will repay a portion of their earnings from 2011 and 2012, and settlements with retired partners and firms that hired former Dewey partners as a means of raising more than $70 million.

Also among the ten companies that are owed money by Dewey & LeBoeuf is Zolfo Cooper, whose Joff Mitchell acted as an adviser and billed $6 million. (Zolfo’s agreement allowed for bills to be submitted and paid on a monthly basis.)

Other firms that are billing Dewey & LeBoeuf include Brown Rudnick ($3.54 million), Goldin Associates ($1.3 million), Deloitte Financial Advisory Services ($1.25 million), Muller & Partner ($700,234), Ernst & Young ($257,161), Keightley & Ashner ($169,366), and Epiq Bankruptcy Solutions ($129,152).

U.S. Bankruptcy Judge Martin Glenn is overseeing the filing fee requests and has approved some of the fees already. AM Law reports that Glenn has scolded many of the advisers seeking funds for seeking reimbursement for taxi rides, hotel stays, and vague time entries.