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Dewey Bankruptcy Advisers Rejected
July 2, 2012
[ by Melanie Gretchen ]
Hope Davis, who represents the U.S. Justice Department in the bankruptcy, objected to three firms Dewey & LeBoeuf selected to provide legal and public relations advisory services. Ms. Davis contended that the case does not "warrant the need for two law firms to perform what appear to be the same services," referring to Proskauer Rose LLP and Keightley & Ashner LLP, which the firm sought to hire to advise on claims brought by the firm's largest unsecured creditor, the U.S. Pension Benefit Guaranty Corporation.
In addition, she objected to the hiring of public relations consultants Sitrick and Company, she said that Dewey "failed to demonstrate the necessity of hiring a public relations firm in a liquidation case." Going forward, the judge assigned to the case in the Manhattan bankruptcy court will decide whether the firms, have already started working for Dewey, and are seeking retroactive approval, can continue working.
Meanwhile, the firm, once one of the largest law firms in the country, listed $193.2 million in assets against $245.4 million in liabilities, following its Chapter 11 bankruptcy filing in May. Currently, Albert Togut of Togut, Segal & Segal serves as Dewey's primary bankruptcy counsel. [CI Note: Perhaps Dewey could use all the help it can get?]
For further details, go to [Reuters, 6/29/12].

