Dewey & Leboeuf's UK operations have been placed into administration following the largest ever legal collapse. BDO business restructuring partners Mark Shaw and Shay Bannon have bee appointed joint administrators. The US based firm went into chapter 11 last night with the partners blaming the "Great Recession" on the company's collapse. However, they have also admitted that their ambitions for growth coupled with the large packages they paid to senior executives to encourage lateral moves were also to blame.
The firm had huge debts as it tried to fund its expansion and there balance sheet showed that they had a deficiency of some $52m (£33m). 90 employees are expected to remain in order to wind the business down.
The Chapter 11 petition says Dewey expects to pay off its unsecured creditors, a group that includes banks, vendors, and other law firms. In a press release, the firm said the filing was made "to preserve assets and wind down its business in the most orderly and efficient way possible".
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