Will Former Stroock Partners Ever See Their Capital Again?

// Ed. note: Welcome to our daily feature, Quote of the Day.

Our plan is to wind down the firm in an ordinary manner without the need for a bankruptcy filing. We are working closely with creditors, who understand that a bankruptcy will only divert resources that could otherwise be used to pay creditors.

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We are not in a position to make any statement as to whether former partners might receive a distribution of capital. Partners are last in line after winddown costs, payments to senior lenders and payments to unsecured creditors.

— Gary Polkowitz, senior managing director of advisory firm Teneo who serves as liquidation manager for Stroock & Stroock & Lavan, in comments given to the American Lawyer on how the wind-down process is going for the failed firm. Polkowitz, who provided consulting services to Dewey & LeBoeuf in its dissolution, also said that his team has been in touch with Stroock’s creditors to “provide assurances that restructuring professionals are in place, free of any conflict of interest, to ensure that funds will be distributed fairly and equally according to the law.”

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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.

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Biglaw, Law Firm Closures, Quote of the Day, Stroock, Stroock & Stroock & Lavan