Dewey & LeBoeuf modified second amended liquidation plan confirmed

By Jim Witters

Wilmington, Del., Feb. 27 - Dewey & LeBoeuf LLP's modified second amended plan of liquidation has been confirmed, according to a Feb. 27 filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the plan, substantially all of Dewey & LeBoeuf's assets will be liquidated.

The sale proceeds and the remainder of the company's assets will be distributed through a liquidation trust and a secured lender trust.

Creditor treatment

Treatment of creditors under the plan includes the following:

• Non-tax priority claims will be paid in full in cash;

• Holders of secured lender claims will receive a share of secured lender trust interests and liquidation trust secured lender interests. In addition, the lenders' secured lender deficiency claim will be allowed and treated as a general unsecured claim;

• Holders of other secured claims will either be paid in full in cash or receive the estate's right, title and interest in the collateral securing the claims;

• Holders of general unsecured claims will receive a share of liquidation trust general unsecured creditor interests;

• Insured malpractice claims will be paid solely from the proceeds of any applicable malpractice policy;

• Holders of subordinated claims will receive no payment unless all other claims are paid in full; and

• Interest holders will receive no distribution.

Dewey & LeBoeuf, a New York-based international law firm, filed for bankruptcy on May 28, 2012. Its Chapter 11 case number is 12-12321.

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