Citibank Tries To Push Howrey Into Ch. 7

Law360, New York (September 16, 2011, 6:12 PM EDT) -- Citibank NA asked a California bankruptcy judge Friday to convert the Chapter 11 liquidation of Howrey LLP to Chapter 7 and require a trustee to oversee the wind-down, citing an impasse in negotiations between the now-dissolved law firm and its biggest creditor.

After allowing the firm to use about $5.8 million in cash collateral in June, Citibank says it is losing confidence in Howrey's ability to collect outstanding client bills, which would secure much of the $49 million the firm still owes the bank.

“Despite the...
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