In what is arguably one of the most significant moments for the multinational law firm, Stroock & Stroock & Lavan, there appears to be a prevailing sense of uncertainty. Disquiet primarily surrounds the possibility of former partners receiving a capital distribution as part of the firm’s wind-down process. Gary Polkowitz, the senior managing director of advisory firm Teneo, spearheads the liquidation as manager for the company.
Gary Polkowitz delineated the plan to wind down the firm conventionally, eliminating the need for a bankruptcy filing. He expressed his team’s close collaboration with creditors, conveying the understanding that a bankruptcy would only divert resources otherwise available for creditor payment. However, Polkowitz remained quiet concerning any guarantees on whether former partners will receive any capital distribution, implying that the partners are not at the top of the payout hierarchy. They will receive their share according to the law after wind-down costs, payments to senior lenders, and unsecured creditors.
Reflecting on his experience while providing consultation services during the dissolution of Dewey & LeBoeuf, Polkowitz stated that his team has communicated with Stroock’s creditors. His goal is to ensure the availability of restructuring professionals who can fairly and equally distribute the funds, free of any conflict of interest, aligned with the legal obligations.
While patience might be the only virtue that the former partners can hang onto, stakeholders’ interest stirs the question: Will the former Stroock partners ever see their capital again? For more detail, read the full article
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