When those guiding Dewey & LeBoeuf through Chapter 11 first unveiled the plan calling for all former partners who received cash payments from the firm between 2011 and 2012 to repay the bankrupt estate according to a sliding scale in exchange for a waiver from any Dewey-related liability, the response was not entirely positive. Among the main complaints about the so-called partnership contribution plan distributed on July 11: that Dewey’s former leaders—who were presumably in a position to halt the firm’s collapse—were not being asked to repay the estate more on the basis of their status. On Thursday, the stewards of the Dewey bankruptcy moved to address those concerns and build more support for the settlement proposal, presenting a revised plan that asks for greater contributions—a total of $2.1 million—from the firm’s executive committee members. Other changes include whittling the total sum sought via the settlement from $103.6 million to $90.4 million, trimming the number of former partners being asked to participate from 709 to 672, lowering from $25,000 to $5,000 the minimum amount a former partner can agree to repay the estate in order to receive the liability waiver, and elevating from $3 million to $3.5 million the maximum amount of an individual contribution. The deadline for partners to sign on to the plan has been pushed back to August 7. (While the estate’s current budget runs out at the end of the month, Mitchell said he and the firm’s other advisers are working with Dewey secured creditors to hammer out an extension and that he is “confident” the estate will get the money needed to continue operating until August 7.)
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