A U.S. bankruptcy court judge approved a plan Wednesday that allows the Dewey & LeBoeuf estate to cover its costs for the next six-and-a-half weeks of the firm’s Chapter 11 proceedings. Come August, though, the estate’s ability to pay for ongoing operations may rest heavily on whether it can recover money from former Dewey partners through a settlement.
In stark contrast to the contentious hearing held the day after Dewey’s May 28 bankruptcy filing, Wednesday’s session—during which various parties involved in the matter pressed Judge Martin Glenn to approve a final order empowering the Dewey estate to use the cash collateral that protects its debt to secured lenders to fund its day-to-day operations—was mostly amicable.
