July 19 (Reuters) - Bankrupt law firm Dewey & LeBoeuf's plan
to pay bonuses to its remaining employees has drawn objections
from a U.S. bankruptcy monitor who said the plan might not be
U.S. Trustee Tracy Hope Davis, who represents the Justice
Department in the bankruptcy case, said in court papers that the
proposed plan did not provide enough information to determine if
the cost of retaining employees was economically feasible.
The law firm is seeking approval from the U.S. Bankruptcy
Court in Manhattan to pay $450,000 to its 52 remaining employees
who collect money and bill former clients.
The trustee also said the plan could not be justified
because the firm is no longer operating as a normal business.
Togut, Segal & Segal LLP, the law firm representing Dewey,
could not immediately be reached for comment.
Davis, in court papers filed on Wednesday, also objected to
the law firm's retention of Thierhoff Muller & Partner as its
wind-down counsel and consultant for its German business. She
argued that Dewey had not demonstrated that the terms and
conditions of Thierhoff Muller's arrangement were reasonable.
Last month, the trustee objected to the retention of law
firms and public relations advisers that had filed applications
to advise Dewey in its bankruptcy proceedings.
Once one of the largest law firms in the United States,
Dewey was hit by the loss of the vast majority of its roughly
300 partners to other firms amid concerns about compensation and
a heavy debt load.
The firm filed for Chapter 11 bankruptcy protection in May,
listing $193.2 million in assets and $245.4 million in
The case is In re: Dewey & LeBoeuf LLP, U.S. Bankruptcy
Court, Southern District of New York, No. 12-12321.
For Dewey: Al Togut and Lara Sheikh of Togut Segal & Segal.
(Reporting by Tanya Agrawal)
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