Gone but Not Forgotten – Bankrupt Firms Pursue Unfinished BusinessNovember 16, 2012 – In The News
Regardless of the controversy in the New York courts, firms can look to plenty of prior settlement for an idea of what kid of liability they might face.
A search of the public bankruptcy dockets show that he estates of several firms have reached settlements with firms that picked up their former partners totaling nearly $33.5 million.
Fox Rothschild partner Yann Geron, the trustee in the Thelen bankruptcy, has gotten approval from the bankruptcy judge overseeing the case to expedite unfinished business claims that are worth less than $1 million. Geron and his special counsel can settle smaller claims without having to vive notice to all creditors or having to bring each individual proposed settlement before the court.
As of September, Geron had collected nearly $2 million from 22 firms through the expedited process. He says that the claims are based on an estimate of the amount of profit that settling firms have made from the unfinished business matters that former Thelen partners brought with them.
According go Geron’s numbers, the $1,926,749 recovered represents about 68 percent of the more than $2.8 million claims asserted by the estate.