Ex-Coudert partners face $12m bill to settle bankruptcy
Former partners at Coudert Brothers will need to pay about $12m (£6.02m) to help liquidate the defunct law firm according to a plan produced by an examiner in the firm's bankruptcy, writes the National Law Journal. In a report issued on 27 March, court-appointed examiner Harrison Goldin determined that former Coudert partners should pay $11.8m (£5.92m) in exchange for liability release from creditors and the firm itself, which filed for Chapter 11 bankruptcy after a mass exodus of partners.
April 09, 2008 at 07:11 AM
2 minute read
Former partners at Coudert Brothers will need to pay about $12m (£6.02m) to help liquidate the defunct law firm according to a plan produced by an examiner in the firm's bankruptcy, writes the National Law Journal.
In a report issued on 27 March, court-appointed examiner Harrison Goldin determined that former Coudert partners should pay $11.8m (£5.92m) in exchange for liability release from creditors and the firm itself, which filed for Chapter 11 bankruptcy after a mass exodus of partners.
The issuance of the partner compensation plan marks a significant step toward closing the books on the defunct firm.
Although the report calls for the former partners to cover $14.1m (£7.07m) in actual claims, the plan discounted the amount owed in order to "incentivise partners to join the settlement proposed".
Under the terms of the report, the active partners on or after 1 January, 2005 – numbering 152 lawyers – would pay a total of $9.9m (£4.96m). The 133 partners who were retired, terminated or had withdrawn before that date would pay a combined $1.9m (£950,000).
The amounts that each former partner must contribute under the plan vary widely. Jacques Buhart, now Herbert Smith Paris corporate chief, is charged with owing the highest figure – $276,123 (£138,442).
Dechert partners Rene Gonne and Fabrice Mourlon Beernaert, who are both based in Brussels, would owe $163,342 (£81,896) and $159,156 (£79,797) respectively under the plan.
Coudert voted to dissolve its partnership in August 2005, with sizeable teams moving to firms including DLA Piper, Baker & McKenzie and Orrick Herrington & Sutcliffe.
Coudert is being represented in the bankruptcy action by Tracy Klestadt of Klestadt & Winters.
The National Law Journal is a US sister title of Legal Week.
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