imchuckbass58 wrote:LawIdiot86 wrote:The NY office had over 500 before these defections started. Why Shearman, another huge NY firm, would want it is beyond me. Reed Smith and Greenberg are slightly more plausible given their bases in other regions, but I don't know why another firm would dream of going near legacy Dewey's pile of debt.
Well, the idea is that the prepack would significantly reduce the amount of debt Dewey carries.
Right, it would take Chase and Citi (and Fedex) off the table, but still leave a lot of ugly expenses on the table that would be annoying as hell to deal with. Dewey is twice as large and twice as old as Howrey was and the task of sorting Howrey's files is apparently ungodly (http://www.washingtonpost.com/business/capitalbusiness/the-law-firm-may-have-dissolved-but-the-records-remain/2012/02/21/gIQAjxilcR_story.html). Also, I'm sure lots of small creditors, servicers, and non-lawyer employees would get screwed in a prepackaged bankruptcy and sue. They probably would lose (I don't know bankruptcy law that well), but the cost of getting those cases dismissed and potential bad PR from EEOC-type actions are another cost that survives bankruptcy. I have no idea why these firms wouldn't just cherry pick partners and practices. Law firms have no assets worth buying.