Howrey’s Chapter 11 Conversion Approved By Court

by San Antonio Attorney

Howrey’s bankruptcy was converted from involuntary to voluntary by a federal judge in California.

The motion to change the case to Chapter 11 was approved by U.S. Bankruptcy Judge Dennis Montali on Monday.

A lawyer of Howrey said that the firm will propose a liquidation plan before the end of the year or by the end of the year. The move of the case from California to Washington will help expedite the process. Howrey had around 750 attorneys and 16 offices in 2008. At present, it only has five in Washington D.C.

After the conversion of the case, Howrey filed its financial troubles in details including 20 of its biggest unsecured creditors’ claims which is roughly $15.2 million.

According to court papers filed, Warner Theatre Associates is its largest unsecured creditor, which claims $5.8 million in rent. 770 South Hope Street Associates is the next largest unsecured creditor claiming $988,901 also in rent.

Aside from $15 million that the law firm owes to its unsecured creditors, there are more claims from smaller creditors. Howrey also has a secured debt to Citibank worth $49 million. Its assets consist of $63 million in existing work and accounts receivable, $3.6 million in funds and $8.2 million in capital from insurance companies.

Creditors of Howrey filed an involuntary bankruptcy petition against the law firm in San Francisco federal court, in an attempt to force the firm into liquidation.

In court filings on Wednesday, some of its other unsecured creditors where disclosed and they are James W. Martin $375,000, LexisNexis about $646,000, American Express $240,230, and Ricoh Professional Service Corp $617,000.

Howrey requested to change the venue from California to Washington last month, saying that its main operations are in Washington. The judge will consider the motion in a hearing which is scheduled on July.

 

–    Hiring a San Antonio attorney is highly recommended because bankruptcy laws are very complex.

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