Thursday 5 July 2012

Retaining the valuable assets

Much has been written recently about the downfall of international law firm Dewey & LeBoeuf LLP. Only a few, it seems, picked up on a small art slant to the story. Specifically, in the Motion filing for an Order relating to Dewey's Bankruptcy proceedings, lodged on 20 June 2012, it was emphasised that the Motion was not intended to apply to Dewey's personal property in the form of artwork located in the its former Houston, Texas offices, or Los Angeles, California offices.

The Motion sought permission to reject certain unexpired leases and subleases of non-residential real property for Dewey's closed offices and abandon certain personal property located in Dewey's former offices where it is no longer conducting any business. Such lease rejections are reportedly permitted under US bankruptcy law with the court's prior approval. The purpose being to reduce the firm's liabilities as far as possible. Naturally therefore, Dewey were careful to make sure that the assets they have – their artworks – are retained and retrieved from their offices.

For how much longer these works remain in Dewey's possession, with its creditors lining up, remains to be seen.

Source: Wall Street Journal, 21 June 2012

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