Dewey turns to Camerons for advice on UK wind-down
Dewey & LeBoeuf’s London office has hired CMS Cameron McKenna to advise on its wind-down as it emerges that the UK LLP has delayed filing for administration following discussions with advisers and creditors.
Rita Lowe
The UK LLP, which includes the London and Paris offices, is now expected to formally file for administration at the end of next week or the following week, despite previous predictions that a filing would take place in the past few days (10 May 2012).
Camerons’ precise role in the matter is unclear, but it is understood that the firm was instructed by Dewey on behalf of London LLP members to advise the partners on liquidation matters. Banking and restructuring partner Rita Lowe is thought likely to be providing advice. Lowe acted for the administrators of extinct law firm Halliwells in 2010 (26 July 2010).
The delay to the formal filing, which comes after talks with advisers, lenders and bondholders, is aimed at giving staff time to find jobs elsewhere, a source close to Dewey said.
The source said: “They’re hoping to give [them] a chance for people to find work. Contrary to the US, the London market has been very supportive of Dewey. Office managers have been calling the [Dewey] office manager in London, saying ‘we need people’.”
London HR manager Karen Morrissey and legal HR manager Katharyn White are thought to be playing a central role in relocating staff, while former City chief Peter Sharp is also involved in finding new homes for trainees (10 May 2012).
Dewey has reportedly drawn down $75m (£47m) of a $100m (£63m) credit line from a banking consortium consisting of JPMorgan as the lead lender as well as Bank of America, Citi Private Bank and HSBC. It also issued a $125m bond, which was taken up by insurance companies, in 2010 (16 April 2012).
Accountancy firm BDO is also advising London partners on the wind-down (7 May 2012). Internally, matters are being run by City restructuring partner Mark Fennessy, one of five people appointed to a steering committee at the start of May to prepare for the office’s closure (1 May 2012).
Dewey instructed Albert Togut of Togut Segal & Segal as bankruptcy counsel in the US last month (20 April 2012), with the New York office now effectively closed (16 May 2012).
Dewey, Camerons and BDO declined to comment.
Readers' comments (10)
Gonzo1 | 16-May-2012 4:50 pm
Is it true that the former managing partner of Dewey London abandoned ship al la Francesco Schettino of the Costa Concordia?
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Anonymous | 16-May-2012 5:11 pm
So it's the Halliwells' line-up reconstituted. Let's hope they get it right this time. For those who enjoy such things, [2012] EWHC 1194 (Ch) provides an interesting insight on BDO's pursuit of claims.... Oh, and if you're a departing partner in the UK from Deweys, make sure you get a deal done now on your current accounts.
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Anonymous | 16-May-2012 5:12 pm
"London HR manager Karen Morrissey is thought to be playing a central role in relocating staff, while former City chief Peter Sharp is also involved in finding new homes for trainees."
and
"Dewey, Camerons and BDO declined to comment."
Gosh, I wonder who the "source" of this story might be?
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Anonymous | 16-May-2012 6:52 pm
Peter Sharp's behaviour has been unforgettable. Like Capt. Schettino, he "fell into a lifeboat" and is now "coordinating rescue efforts from the shore". He should have stayed onboard at Dewey London until all trainees were placed with other firms.
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Anonymous | 17-May-2012 10:32 am
@Gonzo1, not quite true. The captain of the Concordia did not call his crew together to assure them he was going nowhere shortly before doing just that.
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Anonymous | 17-May-2012 11:21 am
A leader shouldn't defect in the middle of a crisis.
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Anonymous | 17-May-2012 12:43 pm
This sad spectacle has established beyond doubt that "leaders" were in fact somewhat thin on the ground at Dewey, donchyathink?
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Anonymous | 17-May-2012 1:27 pm
For those in the know, the last comment is not strictly correct. While management ran for the lifeboats and sailed away from the good ship Dewey, certain others stepped up to the bridge to lead the rescue efforts and look after those remaining onboard. They have our gratitude for the leadership that they are showing.
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Affable Al | 17-May-2012 9:48 pm
LOL the Dewey partners should ask the former Halliwells partners about BDO. I am sure the references will be glowing.
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Anonymous | 24-May-2012 3:29 pm
I was friend of the old Lebefer before Merger when Dewey turned up so did the bad Managment and things started to decline.nthis should be a lesson to other law practices don't forget your small clients and suppliers!!
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