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In re Altheimer & Gray

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ARGUED APRIL 1, 2010

Before EASTERBROOK, Chief Judge, and BAUER and HAMILTON, Circuit Judges.

At the height of its prosperity, Altheimer & Gray, a law firm founded 1914 in Chicago, had offices in 11 cities: Bratislava, Bucharest, Chicago, Istanbul, Kiev, London, Prague, San Francisco, Shanghai, Springfield, and Warsaw. But in 2003 it entered involuntary bankruptcy after it failed to pay its landlord and other creditors. The firm’s creditors approved a liquidation under which debts to its partners would be subordinated to debts owed to other creditors. (This was technically a plan of reorganization under Chapter 11 of the Bankruptcy Code of 1978; the winding up of a business is one form of reorganization.) The bankruptcy court confirmed this plan in 2005; no one appealed.

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