Gaston & Snow partners unite; they object to payments
Article Abstract:
A group of ex-partners of the bankrupt Boston law firm Gaston and Snow have banded together to oppose a creditors committee motion to convert their case from a Chapter 11 to a Chapter 7 bankruptcy. The motion may have been a bluff to get negotiations back on track but if successful would enable the bankruptcy trustee to sue each partner for a total of $54 million. The creditors committee has been warned that many personal bankruptcy filings and little in the way of cash for creditors would result from the proposed conversion.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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Banks ask more of firms; loans now come with additional strings attached
Article Abstract:
Banks are developing stringent new standards for deciding whether to approve law firms' applications for loans. A wave of bankruptcies among law firms and the doubling of debt-per-partner in the last 10 years have persuaded the banks to be much more careful in lending money to law firms. This is particularly true of non-recourse loans for which banks lack the right to go after each partner for the full amount of the debt. With money generally tight banks can no longer expect law revenues to be as plentiful as they once were.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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Law firm bankruptcies shook bank confidence
Article Abstract:
Banks no longer regard the loaning of money to law firms as a safe investment thanks to the recent flurry of bankruptcies among major firms. For instance, a four bank consortium is likely to recover only a fraction of the $83 million it lent New York's Finley, Kumble, Wagner, Heine, Underberg, Manley, Myerson & Casey now that the firm has filed a Chapter 11 petition. Several other banks likewise stand to lose substantial sums due to failure of law firms.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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