Two foreign former Howrey LLP partners will pay $50,000 apiece to end tax obligation cases with the trustee representing the long-defunct law firm after he claimed the duo had skipped out on payments and contractual obligations, according to a settlement approved Wednesday in California bankruptcy court.
A California bankruptcy court was right to slash fee payments to McGrane LLP over ethical lapses and costly flights of fancy in its work representing creditors of long-defunct Howrey LLP, the Ninth Circuit has affirmed, bringing an end to McGrane’s yearslong bid to undo the public rebuke.
Howrey LLP’s trustee filed two new cases against former partners of the long-defunct firm over unpaid tax obligations, claiming in a pair of adversary proceedings Monday that the European partners had skipped out on their payments and contractual obligations.
Diamond McCarthy LLP sought final approval Monday from a New York bankruptcy judge for more than $8.3 million in fees and expenses related to its years-long work winding down Howrey LLP, which closed in 2011 after years of declining profits and partner defections.
A California bankruptcy judge on Friday approved Arnstein & Lehr LLP to serve as special counsel to the Chapter 7 trustee of Howrey LLP, finding the Chicago-based firm would not present any conflicting interests in the ongoing bankruptcy process.
A California bankruptcy court Wednesday signed off on settlements between the Chapter 7 trustee for defunct law firm Howrey LLP and several creditors seeking unpaid rent, including the Dewey & LeBoeuf Liquidation Trust and U.S. Bank NA.
The bankruptcy of failed law firm Howrey LLP was granted conversion to a Chapter 7 liquidation on Friday in California federal court, according to court records, a move that was considered likely after real estate obligations made moving forward in Chapter 11 a challenge.
A California bankruptcy judge has indicated he will grant a request to convert Howrey LLP's bankruptcy case into a Chapter 7 liquidation later this week after the trustee overseeing the shuttered law firm and its creditors told the court that he couldn't reach a deal related to former landlords' rent claims.
McGrane LLP urged a California bankruptcy court Wednesday to hold off on letting now-defunct Howrey LLP’s trustee make $5 million in payments to counsels and creditors, arguing a Ninth Circuit appeal of McGrane's fees reduction is bound to affect the distribution.
A former Howrey LLP partner gave up $110,000 in claims against the failed firm and agreed to pay the Howrey estate $950, allowing the current Jones Day partner to avoid a potential clawback suit under a deal filed Wednesday in California bankruptcy court.