Dewey & LeBoeuf had filed Chapter 11 bankruptcy but there was a magnitude of opposition to the liquidation plan as reported by the New York Law Journal. Chapter 11 offers the opportunity to restructure its debts, and is generally filed by corporations. As opposed to Chapter 7 bankruptcy, where a company goes out of business and liquidates all of the company’s assets. Liquidate means to sell the company’s assets. The absolute priority liquidation process is used, where the investors who take the least amount of risk is paid first. The Dewey Estate was said to owe $600 million to creditors. $70 million of which was to be raised by the partners of Dewey. Some of contestants state that they were deferred payments then later ordered to return monies, while others were not asked to pay. The remainder of the opposition claims that there was a breach of contract and they should not be responsible for said monies due. On another issue, it is believed that Chapter 7 liquidation would have been a better route.

In these financially unnerving times, it is advised to seek aid from experienced professionals. Bankruptcy is complex and affects the rest of the life of your and your loved ones. The type of bankruptcy will determine your financial future. If you have any questions or concerns, then Jayson Lutzky is here for you and your family. You may contact him at 1-800-660-5299, for a free initial consultation. You may also visit www.MyNewYorkCityLawyer.com.