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Wednesday, February 27, 2013

U.S. judge approves Dewey & LeBoeuf liquidation plan, (NYSE: JPM)

A federal bankruptcy judge approved the liquidation plan for Dewey & LeBoeuf on Wednesday, a milestone in the winding down of the collapsed law firm that paves the way for creditors to recover tens of millions of dollars. U.S. Bankruptcy Judge Martin Glenn said on Wednesday that the bankruptcy plan is in the best interests of the creditors and the estate."It is remarkable that only nine objectors filed (motions against the plan) as of today, and nearly all of them are resolved," said Glenn of the swift nature of the bankruptcy proceedings in New York.Dewey & LeBoeuf, which once employed more than 1,000 lawyers in 26 offices worldwide, last year became the largest U.S. law firm to file for bankruptcy. Its demise has been largely attributed to compensation guarantees the firm's leaders made to many partners.Under the bankruptcy plan, more than 450 former partners agreed to pay the estate at least $71.5 million in exchange for a release from potential litigation. Those funds will now go to satisfy secured lenders such as JPMorgan Chase & Co, which have a total of $262 million in claims against Dewey, and an unknown amount from unsecured creditors. One unsecured creditor, the Pension Benefit Guarantee Corp, has a $120 million claim.

JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM traded higher by 3.53% or $1.68/share to $49.28. In the past year, the shares have traded as low as $30.83 and as high as $49.68. On average, 23587900 shares of JPM exchange hands on a given day and today's volume is recorded at 31923412.