Friday, March 14, 2014

Jacoby & Meyers Creditors Seek Bankruptcy for Failed Firm

Bloomberg reports that an involuntary bankruptcy has been filed against Jacoby & Meyers by creditors.


March 14, 2014

Jacoby & Meyers Bankruptcy LLP creditors with more than $1 million in claims moved to force the defunct law firm to liquidate in a bid to unravel the “largest consolidation of consumer law firms in U.S. history.”
Creditors including Inc. and attorneys’ offices initiated an involuntary Chapter 7 proceeding against the firm, according to a petition filed today in U.S. Bankruptcy Court in Manhattan. If they succeed, a trustee will be appointed to sell the firm’s assets.
“Liquidation must be done by an independent bankruptcy trustee in a transparent proceeding under the sound supervision of this court,” the creditors said in court papers.
The firm, formed by the 2012 merger of Jacoby & Meyers LLC and Macey Bankruptcy Law PC, ceased operations in December, transferred its assets to trusts and assigned a trustee, according to court filings. Jacoby & Meyers once had 135 offices in all 50 states, with 310 lawyers and 600 non-attorney staff, according to a statement announcing the merger.
The creditors claim there are “numerous issues” surrounding the assignment of assets and that debts haven’t been paid as they come due. . . . 
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