Creditors are targeting 180 shareholders altogether and have carved out policy committee members and senior management for separate settlement talks.
Fifty-six partners who made less than $450,000 will pay $700,000 to creditors, according to court filings. Another six partners who made more than $450,000 will pay $920,000 to creditors.
No settlements have been reached with policy committee members or senior management.
What's next, what's left, after the jump.
The settlement proposal was filed late Wednesday night. A hearing is scheduled for Dec. 30. Court filings indicate more settlement proposals might come this month, but creditors won’t offer an “early settlement discount” for much longer.
Creditors sought $150 million at the beginning of the mediation, according to confidential briefs filed.
Creditors’ confidential exhibits, obtained by The Recorder, show senior management knew in April 2008 the firm needed to merge to survive, and had recruited more than five merger candidates earlier in the year. As they scrambled to reassure partners of the firm’s good health, they also discussed its “mortality” at their policy committee meetings. Read details at CalLaw.com.
Update: We've got a bit more in our full story on the deal, at CalLaw.
— Amanda Royal
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