Though the newly jobless will continue to receive some benefits through April 30, they were informed in the memo that all of Howrey’s U.S. offices would close and that most staffers would be terminated as of close of business Thursday.

“We did not foresee this outcome. It was Howrey’s intent to continue salary and benefits pursuant to our WARN obligations, but our ability to do so was contingent upon the approval of Citibank,” the firm said in its memo. “We know that this is extremely difficult information to receive. We regret this action and wish you success in your future endeavors.”

Latham & Watkins corporate and restructuring partner Peter Gilhuly, who is advising Howrey on its wind-down efforts, confirmed via e-mail that Citi had cut payroll funding to the firm after March 31. (Above the Law first broke news of the termination memo, posting it online early Thursday.)

The Am Law Daily reported earlier this month on the 702 WARN Act notices sent via overnight mail to Howrey employees across the country. The firm, which officially dissolved on March 15, had previously said that, pursuant to its WARN Act obligations, it would pay professional and other support staff through May 9 if those employees did not find new jobs by that date.

But Howrey also owed a substantial sum against a $75 million credit line extended to the firm by Citi. Howrey took on a good chunk of that debt at the start of 2011 because, like most large law firms when a new year begins, it needed money to cover payroll and rent payments.

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