How Rey Report One

7/31/2019 How Rey Report One

1/37

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

DIAMOND MCCARTHY LLPHoward D. Ressler, Esq. (pro hac vice)Stephen T. Loden, Esq. (pro hac vice)Jason M. Rudd, Esq. (pro hac vice)Christopher R. Murray, Esq. (pro hac vice)

909 Fannin, 15th FloorHouston, TX 77010Telephone: 713-333-5100Facsimile: [email protected]@[email protected]@diamondmccarthy.omCounsel for Allan B. Diamond,

Chapter 11 Trustee for Howrey LLP

KORNFIELD, NYBERG, BENDES & KUHNER, P.C.Eric A. Nyberg, Esq. (Bar No. 131105)Chris D. Kuhner, Esq. (Bar No. 173291)1970 Broadway, Suite 225Oakland, CA 94612Telephone: 510-763-1000Facsimile: [email protected]@dornfieldlaw.comLocal Counsel for Allan B. Diamond,


UNITED STATES BANKRUPTCY COURTFOR THE NORTHERN DISTRICT OF CALIFORNIA

In re

HOWREY LLP,

Debtor.

Case No. 11-31376 DM

Chapter 11

FIRST INTERIM REPORT

OF CHAPTER 11 TRUSTEE

ALLAN B. DIAMOND

Case: 11-31376 Doc# 765 Filed: 08/20/12 Entered: 08/20/12 12:17:41 Page 1 of37


2/37

2

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Table of Contents

I. Introduction........................................................................................................................4

II. Background ........................................................................................................................6

III. Estate Administration .........................................................................................................7

A. Trustees Retention of Professionals ................................................................................7

B. Compensation of the Trustee and Diamond McCarthy.....................................................9

IV. Business Operations .........................................................................................................10

A. Wind-Down Operations.................................................................................................10

1. Staff Reductions and Management of Critical Staff....................................................10

2. Closing Facilities and Cutting Costs...........................................................................11

3. Winding Down the Debtors Pension Plans................................................................11

4. Downsizing Information Technology Infrastructure...................................................11

5. Tax Matters ...............................................................................................................12

6. Cash Collateral Use and Negotiations with Citibank, N.A..........................................12

B. Disposition of Records of Former Howrey Clients.........................................................14

C. Foreign Operations ........................................................................................................15

1. United Kingdom........................................................................................................15

2. Belgium.....................................................................................................................16

3. Germany....................................................................................................................16

V. Asset Management ...........................................................................................................17

A. Asset Recovery..............................................................................................................17

1. Accounts Receivable..................................................................................................17

2. Contingency Fee Interests..........................................................................................18



3/37

3

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

3. Equipment and Other Assets......................................................................................23

B. Claims Investigation, Analysis and Recovery ................................................................23

1. Preference and Fraudulent Transfer Litigation ...........................................................24

2. Unfinished Business Claims...................................................................................24

3. Other Potential Claims/Litigation...............................................................................25

C. Asset Disposition...........................................................................................................25

1. Art Collection Sales...................................................................................................26

2. Other Liquidations and Settlements............................................................................26

D. Defense of Claims .........................................................................................................26

1. Proofs of Claim..........................................................................................................26

2. The WARN Act and Warner Investments Adversaries ...............................................27

VI. Recovery to Creditors and a Chapter 11 Plan of Liquidation.............................................27



4/37

4

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

I. INTRODUCTION

Allan B. Diamond, the chapter 11 trustee (the Trustee) of the estate of Howrey LLP

(Debtor or Howrey) makes this First Interim Report on the progress and status of the case.

Since the Trustees appointment on October 12, 2011, the Trustee, with his team of

professionals and Howrey staff, have tackled many complex issues and successfully advanced

this bankruptcy case by:

a. Transitioning administration of the estate from the debtor-in-possession;

b. Negotiating weekly, monthly and quarterly extensions of the Debtors authorityto use cash collateral;

c. Assessing, asserting and protecting the Debtors interests in various contingencyfee cases, including collecting significant recoveries;

d. Selecting and employing legal, financial and collection professionals tostreamline administration of the estate;

e. Transitioning the collection of the Debtors accounts receivable to professionalsemployed on a contingency fee basis resulting in over $5 million in recoveries;

f. Finalizing the wind-down of the Debtors three pension plans;

g. Developing, obtaining approval and implementing procedures for thedisposition of voluminous physical and electronic client files;

h. Winding down the Debtors information technology infrastructure whilepreserving all critical data;

i. Analyzing, preparing and conducting asset sales;

j. Investigating, gathering and analyzing voluminous data and documents relatedto potential litigation claims against myriad third-parties as well as conductingappropriate legal research, analysis and preparations for the commencement ofproceedings that seek monetary recoveries;

k. Commencing document and testimonial discovery related to certain potentialassets and claims; and

l. Addressing numerous daily issues that arise in bankruptcy cases of similarcomplexity.



5/37

5

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Much has been accomplished in a relatively short amount of time. But much remains to

be done to complete the administration of the Debtors estate and provide the maximum recovery

for creditors.

The priority of the Trustees ongoing efforts is to maximize the recovery for Howreys

creditors (secured, administrative, priority and unsecured). It is anticipated that most of the

value available to creditors will come from potential claims that the Trustee is currently

investigating and developing arising from: (i) Howreys interest in pending contingency fee

cases; (ii) claims against former partners who received distributions at a time when the firm was

insolvent; (iii) claims against former partners that departed with unfinished business and their

successor law firms that have retained profits belonging to the Howrey estate; and (iv) other

potential litigation claims against various third-parties. The chapter 11 process allows the

Trustee the flexibility to pursue the full-range of available options to recover and monetize assets

as well as resolve disputes with Howrey creditors and, once identified, to craft an appropriate

plan of liquidation.

Another important goal has been to protect the interests of former clients by, among other

things, ensuring that client records and files are preserved, administered and ultimately disposed

of in a way that provides notice and an opportunity to retrieve their files to former clients while

safeguarding the confidentiality of client information. The chapter 11 process allows the Trustee

to direct resources to ensure this critical job is handled consistently with the highest standards of

professional ethics.

This First Interim Report is offered as a supplement to the Trustees monthly operating

reports, status hearings and other filings with the Bankruptcy Court.



6/37

6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

II. BACKGROUND

Prior to bankruptcy, Howrey was one of the largest law firms in the world. Founded in

1956, the firm grew to employ over 750 lawyers at offices in Washington, D.C., California,

Illinois, New York, Texas, Utah, Virginia and several foreign countries, including Belgium,

France, Germany, the Netherlands, Spain, Taiwan and the United Kingdom.

Howreys profitability suffered in the wake of the worldwide financial crisis and partners

began abandoning the firm. By March 2011, Howreys partnership formally voted to dissolve

the law firm. A Dissolution Committee was appointed to direct Howreys wind-down and

liquidation.

On April 11, 2011 (the Petition Date), three of Howreys creditors filed an involuntary

petition for bankruptcy under chapter 7 of the Bankruptcy Code in the United States Bankruptcy

Court for the Northern District of California, San Francisco Division (the Bankruptcy Court).

On June 7, 2011, the case was converted to a voluntary chapter 11 proceeding under the United

States Bankruptcy Code, thus allowing Howrey to continue as a debtor-in-possession. The

Dissolution Committee continued to direct the bankruptcy case on Howreys behalf until

Howreys secured lender, Citibank N.A., filed a motion to appoint a chapter 11 trustee to take

over administration of the case.

On October 7, 2011, the United States Trustees Office of the Department of Justice

appointed Allan B. Diamond to serve as the chapter 11 trustee. On October 12, 2011, the

Bankruptcy Court approved that appointment. Immediately upon appointment, the Trustee

began to handle the affairs of the Howrey bankruptcy estate. These efforts are discussed below

in the following groupings:

A. Estate Administration concerns the bankruptcy administrative aspects of thecase, including selection and retention of professionals, review and analysis of all



7/37

7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

professional fee applications and all dealings with the Bankruptcy Courtgenerally.

B. Business Operations refers to winding down Howreys business operations,including the (i) maintenance, assembly, protection, return, disposition andhandling of all client and law firm records, files and data, (ii) closing Howreysworldwide offices and coordinating with other court appointed officials fromforeign countries, (iii) managing and completing the processes associated with allnecessary tax returns, pension, healthcare and other insurance obligations, (iv)reducing and winding down all Howrey operational costs, including informationtechnology systems, data centers, personnel, facilities, furniture, equipment, artwork and other assets, and (v) managing Howreys wind-down staff.

C. Asset Management includes investigation, recovery and monetization of assetsof the estate, including the prosecution, settlement and resolution of potentialclaims and causes of actions against former partners and third-parties, as well asliquidation, sale and disposition of assets.

D. Claims Administration and Litigation Defense encompasses handling anddefending all types of claims against the estate, including WARN Act,professional liability, contract and other potential creditor claims.

III. ESTATE ADMINISTRATION

Upon his appointment, the Trustee began administering the Howrey estate. Given the

complexity of winding down an international law firm with thousands of former clients and

employees, the Trustee has been engaged in the efforts described below.

A. Trustees Retention of Professionals

To assist in administering the bankruptcy case, the Trustee has carefully selected and

successfully secured Bankruptcy Court authority to retain and compensate legal, financial,

accounting and other professionals. The Trustee retained the law firm of Diamond McCarthy

LLP (Diamond McCarthy) to serve as general bankruptcy counsel under section 327(a) of the

Bankruptcy Code. The Diamond McCarthy firm is uniquely suited to serve in this capacity,

given its highly relevant experience advising the trustee in the national law firm bankruptcy case

of Drier LLP, as well as its involvement in other national law firm bankruptcy cases. In addition,

Diamond McCarthys lawyers have decades of experience and expertise in handling all types of



8/37

8

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

litigation claims and fraudulent transfer actions on behalf of bankruptcy trustees, debtor estates

and creditor committees nationwide. Further, Diamond McCarthys ability to hit the ground

running and to provide top-tier legal services at hourly rates that compare favorably to those of

other national firms made Diamond McCarthy ideally suited to serve the Howrey estate. The

Trustee obtained Bankruptcy Court authority to employ Diamond McCarthy on November 29,

2011.

The Trustee engaged the Bay Area law firm of Kornfield, Nyberg, Bendes & Kuhner,

P.C. as local California counsel. Attorneys Eric Nyberg and Chris Kuhner have extensive

experience practicing before the Bankruptcy Courts in the Northern District of California and

continue to provide insight and assistance on a range of estate administration issues. The Trustee

obtained Bankruptcy Court authority to employ the Kornfield, Nyberg, Bendes & Kuhner, P.C.

law firm on November 29, 2011.

The Trustee reached an agreement with the Official Committee of Unsecured Creditors

(the Committee) whereby they each would employ Development Specialists, Inc. (DSI) as

their respective financial advisors in order to minimize costs to the Estate. The Committee had

retained DSI prior to the appointment of the Trustee. The Trustee worked with the Committee to

expand the scope of DSIs services, which the Bankruptcy Court approved.

The Trustee also retained specialized counsel in a number of areas. Most recently, the

Trustee obtained Bankruptcy Court approval to hire the Eversheds law firm in the United

Kingdom for the purpose of, among other potential actions, reinstating the charter of Howreys

UK LLP entity. This action is necessary in order to conduct a proper liquidation of Howrey UK

and eventually to repatriate any and all funds due and owing to the Howrey estate, as described

in more detail below.



9/37

9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Tax and accounting professionals are also essential to the efficient wind-down of

Howreys operations. To provide these services, the Trustee selected the tax accounting firm of

Eichstaed & Lervold LLP to complete Howreys required tax reporting and filing. The Trustee

also hired, with Bankruptcy Court Approval, the accounting firm Baker Tilly Virchow Krause

LP and the actuary firm October Three Consulting Group LLC to provide specialized accounting

to complete the wind-down of Howreys three pension plans.

The Trustee selected and engaged the Adler Law Firm, of San Francisco, California, as

special counsel for collection of Howreys prepetition accounts receivable. The Adler Law Firm

is particularly well-suited for this task, having provided services to numerous chapter 7 and 11

trustees in major law firm bankruptcy cases, including the chapter 7 cases of Brobeck, Phleger &

Harrison LLP and Thelen LLP. The Bankruptcy Court granted the Trustee authorization to hire

the Adler Law Firm on December 20, 2011. In addition to the Adler Law Firm, the Trustee

retained the services of On-Site Associates, LLC, an experienced accounts receivable collection

agent for law firms. The retention agreement called for payment at a percentage of collections

on a sliding scale to both reduce the cash costs to the Howrey estate and to properly incentivize

collections efforts. The Bankruptcy Court approved this retention on December 19, 2011.

B. Compensation of the Trustee and His Professionals

As with all professionals employed under section 327 of the Bankruptcy Code, and

pursuant to the Bankruptcy Courts orders regarding compensation of professionals, the

Trustees professionals (with the exception of those retained on a contingency fee arrangement)

are compensated in arrears on a monthly basis for fees and expenses, subject to a 20% hold-back

of fees pending quarterly interim fee applications. The Trustees compensation is similarly

subject to periodic payments subject to hold-backs. While the Trustee believes the estate will

recover assets sufficient to pay all administrative creditors in full, out of an abundance of caution



10/37

10

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

and to preserve cash in the estate, the Trustees professionals have voluntarily agreed to forego

collection of the 20% hold-backs of fees until additional assets are liquidated. Further, the

Trustee has not sought payment of any trustee fees to date.

The Trustee has previously disclosed that he is also the managing partner of the Diamond

McCarthy law firm. To ensure that the Howrey estate is not billed twice for the Trustees

services, both the Trustee and Diamond McCarthy keep detailed time records that distinguish

between legal services provided by Diamond McCarthy personnel and non-legal services that fall

under the Trustees administrative duties.

IV. BUSINESS OPERATIONS

A. Wind-Down Operations

The Trustee and his professionals continue to perform a wide range of necessary and

essential tasks for the benefit of Howreys estate. These include day-to-day management of

Howreys wind-down operations, as well as meetings with counterparties and other parties-in-

interest to reduce costs and streamline core functions. The Trustee and his professionals also

regularly respond to questions from the public, media and creditors regarding the status of the

case, their claims and their potential recovery.

1. Staff Reductions and Management of Critical Staff

Upon the Trustees appointment in October 2011, Howrey employed approximately

twenty-three full-time employees and several additional part-time and hourly employees, staff

and attorneys, with a monthly payroll exceeding $350,000. The Trustee has since reduced full-

time staffing by nineteen, with four remaining full-time staff members working from Howreys

wind-down office in Washington, D.C. In addition, the Trustee employs three former Howrey

staff members on a part-time and as-needed basis to address specific issues as they arise. The

Trustee has lowered the monthly payroll costs by 84% to $55,000.



11/37

11

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

The Trustee and his professionals work closely with the Howrey staff and rely on their

expertise and institutional knowledge of Howrey to efficiently administer the estate for the

benefit of creditors.

2. Closing Facilities and Cutting Costs

Staff reductions have also allowed the Trustee to downsize Howreys office space. On

the Appointment Date, Howrey occupied over 14,000 square feet of office space on

Pennsylvania Avenue in Washington, D.C. at a monthly cost of over $40,700 pursuant to a one

year lease negotiated prior to the Trustees appointment. On September 1, 2012, the Trustee will

move the Howrey staff to a considerably smaller location at a monthly cost of only $6,000,

which will save the estate $34,700 per month.

3. Winding Down the Debtors Pension Plans

The Trustee has worked to complete the final wind-down of Howreys three prepetition

pension plans. Since his appointment, the Trustee has coordinated the final disbursement of plan

funds to beneficiaries. On July 10, 2012, the Bankruptcy Court approved the Trustees

employment of accountants and actuaries to perform the required final reporting and accounting

required to complete the pension plan wind-downs. The Trustee anticipates the completion of all

final reports and the related governmental filings in the next ninety days, which will complete the

wind-down of the Debtors pension plans.

4. Downsizing Information Technology Infrastructure

At the time of the Trustees appointment, the Debtor operated and maintained the

information technology infrastructure of a global law firm that included 300 physical servers

with 200 terabytes of data operating in data centers in Virginia and the Netherlands. The

operating cost of this infrastructure exceeded $100,000 per month. Operation of data centers

designed to support thousands of users globally was no longer necessary to Howrey, and



12/37

12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

reduction of the costs associated with the data centers was critical to preserve the estates

resources.

Unwinding this infrastructure requires considerable expertise. In late 2011, the Trustee

engaged the Aldridge Company (Aldridge) to assist him in this task. Aldridge was

subsequently approved by the Bankruptcy Court and, by March 2012, Aldridge, the Trustee, and

Howreys wind-down staff successfully reduced Howreys hosted data center from three hundred

servers to a combination of four physical servers and additional cloud-based servers. As a result

of these efforts, the Howrey estate was able to eliminate the need for the massive data centers

based in Virginia, and Amsterdam, Netherlands thus reducing the monthly operating cost of

Howreys information technology infrastructure from over $100,000 to $12,000. This resulted in

a cost savings to the estate of more than $1,000,000 per year. This feat was accomplished while

preserving all former client data and all of the Debtors financial and operational electronic

records.

5. Tax Matters

On July 10, 2012, the Court approved the Trustees employment of tax accountants to

complete the Debtors 2011 tax returns and related tax filings. The Trustees accountants,

together with his financial advisors at DSI, are preparing these tax filings for submission later

this year. Further, the Trustee and his professionals have worked with taxing authorities in

California, Texas, New York, and other jurisdictions to address tax claims, return submissions as

well as other related issues and disputes.

6. Cash Collateral Use and Negotiations with Citibank, N.A.

As well documented in this Bankruptcy Case, Howreys largest creditor, Citibank, N.A.

(Citibank), asserts a lien on substantially all of Howreys prepetition assets, including accounts

receivable and the cash on hand in the estate. Prior to the Trustees appointment, the Debtor and



13/37

13

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Citibank entered into interim cash collateral orders that provided Howrey access to Citibanks

cash collateral to fund operations and pay administrative expenses.

The Trustees appointment coincided with the expiration of the Debtors cash collateral

authority and budget with Citibank, requiring immediate negotiations with Citibank and its

counsel to implement an extension of cash collateral usage to prevent interruption in the Debtors

operations. The Trustee and Citibank successfully reached interim extensions of the cash

collateral budget to fund immediate operational costs.

On December 9, 2011, the Trustee entered with Citibank a Stipulation Extending

Chapter 11 Trustees Use of Cash Collateral, which was approved by the Bankruptcy Court by

order dated December 13, 2011. Under the terms of the stipulation, the Trustee has continued to

administer the Howrey estate using cash collateral by consent from Citibank.

The Debtors ability to use Citibanks cash collateral remains central to the successful

administration of this case. Accordingly, the Trustee and his professionals dedicate significant

time and resources to working with Citibank to ensure the Debtors continued access to cash

collateral. The Trustee has reached numerous agreements on a series of weekly and monthly

interim stipulations and revised budgets that have provided for the Debtors continued use of

cash collateral.

As of the filing of this report, the Trustee presented and Citibank approved an interim

cash collateral budget extension through September 30, 2012. In addition to interim extensions

of cash collateral, as part of the Trustees longer term plan for the recovery and monetization of

estate assets, the Trustee is negotiating the terms of a proposed final cash collateral order with

Citibank that will provide long term access to cash collateral, eliminating the need and cost of



14/37

14

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

negotiating short-term extensions. Once completed, the proposed final order will be submitted to

the Bankruptcy Court for approval.

B. Disposition of Records of Former Howrey Clients

Howrey entered bankruptcy with approximately 220,000 boxes of documents located in

various physical locations around the globe as well as hundreds of terabytes of electronic files of

former clients. The physical records were stored primarily at twelve different third-party

facilities across the United States and in foreign jurisdictions. Electronic records were stored

primarily on Howreys servers and administered by Howrey staff. When Howrey vacated its

headquarters offices in Washington, DC, Howrey staff cleared each office and gathered client

records and files to ensure their safe keeping and maintenance pending appropriate disposition.

The Trustee, among his first major undertakings, proposed and obtained Bankruptcy

Court approval to carry out a comprehensive client files disposition protocol. This protocol,

among other measures, called for written and publication notice to former Howrey clients

regarding the existence of physical and electronic records, provided the opportunity for former

clients to retrieve their files and, finally, in the case of unclaimed or expressly abandoned client

files, authorized the secure destruction of those records. All of this was accomplished after

extensive research and analysis of the applicable codes and canons of professional responsibility

governing the disposition and/or return of client records.

Since the Bankruptcy Court granted approval of the Trustees proposed client records

procedures on March 2, 2012, the Trustee and Howreys staff have implemented the procedures,

including mailing the court approved notice and request form to over 10,000 former clients. In

addition, the Trustee published the court-approved notice in the National Edition of the Wall

Street Journal on May 8, 2012.



15/37

15

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

To date, the Trustee has received approximately 850 responses from former Howrey

clients directing disposition of their physical and electronic records. Approximately 500 former

clients have requested files. Pursuant to the Trustees procedure for cost-sharing, the estate has

invoiced former clients approximately $50,000 to help cover the costs of the client files

disposition.

Notwithstanding this progress, a recent complication is hindering the client file return

process. On June 28, 2012, significant structural damage was sustained at one of Recall North

Americas (Recall) warehouses in Landover, Maryland. Recall is Howreys largest record

storage vendor. A substantial section of the warehouse roof collapsed, compromising a

significant number of stored documents and exposing them to the elements. Recall has informed

the Trustee that approximately 60,000 boxes of documents belonging to Howreys estate were

impacted by the collapse. As of the date of this First Interim Report, Recall is still determining

the scope of damage and when, if ever, the documents will be recovered. The Trustee, his

professionals and Howreys specialized wind-down staff continue to carry out the client file

disposition plan. If a former client requests the return of files that reside in the collapsed

warehouse, Recall will inform the client during the document transfer process. Subject to the

impact of the Recall facility collapse on specific client files, the Trustee anticipates completion

of the transfer and disposition of client files by the end of February 2013.

C. Foreign Operations

1. United Kingdom

Howreys wholly owned United Kingdom partnership (Howrey UK) operated

Howreys London and Paris offices. Howrey UK lost its registration with the Register of

Companies before the Trustees appointment and is not currently a party to any insolvency

liquidation or wind-down proceedings. Nevertheless, Howrey UK faces asserted unpaid



16/37

16

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

creditors claims and holds unadministered assets, including funds held in bank accounts and

uncollected accounts receivable. The Trustee has consulted with UK counsel regarding options

for the liquidation of Howrey UK and determined that Howrey UK should be placed in a

separate insolvency proceeding under UK law.

On August 6, 2012, the Bankruptcy Court approved the Trustees retention of the

Eversheds law firm as his UK counsel to facilitate the commencement of proceedings to restore

Howrey UKs registration and provide for the wind-down of Howrey UK through a court

appointed liquidator. The Trustee anticipates these actions will take two to three months and will

result in Howrey UKs orderly administration by a separate UK liquidator. Although Howrey

has a right to any surplus assets remaining upon the satisfaction of Howrey UKs creditors and

related administrative expenses, at this time the Trustee is not able to predict if, or when, Howrey

will receive any funds from the liquidation of Howrey UK.

2. Belgium

Prior to the Trustees appointment, Belgium authorities appointed Mr. Marc Dal as the

official administrator to conduct the liquidation of Howreys Belgium based assets and liabilities.

Mr. Dal continues to liquidate Howreys Belgium assets and administer claims related to

Howreys Belgium operations. The Trustee and Mr. Dal regularly communicate to coordinate

these liquidation activities and exchange information and data to support each others efforts.

3. Germany

Certain creditors of Howreys German offices initiated secondary insolvency proceedings

against Howrey in Germany. A German court appointed Mr. Daniel F. Fritz as the liquidator for

Howreys German assets for the benefit of creditors with claims relating to Howreys former

offices in Germany. The Trustee and Mr. Fritz regularly communicate to coordinate these

liquidation activities and exchange information and data to support each others efforts.



17/37

17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

V. ASSET MANAGEMENT

The Debtors primary assets include (i) outstanding accounts receivable, (ii) equipment,

art work and other personal property, (iii) interests in pending contingency fee matters, and

(iv) potential litigation claims. Each asset category is addressed below.

A. Asset Recovery

1. Accounts Receivable

The Trustee has funded administration of the Howrey estate primarily with proceeds

collected from prepetition accounts receivable with the consent of Citibank, which asserts a lien

on these proceeds as cash collateral. As noted, the Trustee retained professionals to assist in

collections efforts, including On-Site Associates LLC and the Adler Law Firm. To increase the

efficiency of the collections process, the Trustee also developed a collections settlement protocol

whereby the Bankruptcy Court pre-approved settlement parameters and guidelines for accounts

receivable. The Bankruptcy Court approved these settlement procedures and guidelines on

March 16, 2012.

To date, the Trustees efforts have recovered over $5,000,000 in account receivable

collections. These collection efforts continue, with the estate still holding millions of dollars in

outstanding accounts for collection. However, as collectable accounts are liquidated, the

remaining accounts will increasingly represent the most difficult collection targets. Accordingly,

the Trustee and his professionals have made the aggressive collection of accounts receivable an

urgent priority. The Trustee anticipates the collection of additional funds from accounts

receivable over the next several months, with collections slowing over time due to the natural

collection cycle. Certain of the accounts receivable to be collected are currently in arbitration

proceedings pending in venues across the United States and likely will take significantly longer



18/37

18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

to be resolved through the arbitration process. These matters are being handled by the Adler

Law Firm and other co-counsel as necessary.

2. Contingency Fee Interests

The Debtors interests in various contingency fee cases represent some of the estates

most significant assets, including those matters commonly referred to as the Milk cases and the

Hispanic Farmers cases, among others. The Trustee and his professionals have aggressively

pursued the advancement and collection of these contingency fee interests.

a) Milk Antitrust Litigation

Prior to Howreys vote of dissolution, Howrey represented plaintiffs in two class action

cases alleging violations of the antitrust laws. Shortly after the Howrey Dissolution Committee

was established but prior to the time that Howreys involuntary bankruptcy proceedings were

initiated, the former Howrey partners representing the class plaintiffs in these cases left Howrey

and joined the law firm of Baker Hostetler, LLP (BH), taking these two class action cases and

the clients owning such cases, among other cases and clients, with them to BH. An agreement

(the Transfer Agreement) was reached at that time between BH, on the one hand, and the

Dissolution Committee for and on behalf of Howrey, on the other, with respect to the allocation

between BH and Howrey of attorneys fees and expenses that may be awarded by courts in

connection with any future recoveries in these two class action cases.

In the first class action case,Allen v. Dairy Farmers of America, Case No. 5:09-cv-230 in

the United States District Court for the District of Vermont (NE Milk), a settlement had been

reached in principle and was pending at the time of the Transfer Agreement in March, 2011.

Since that time, the settlement agreement has been fully executed, approved by the court and

consummated. Of the attorneys fees and expenses awarded by the court, lead class counsel at

Cohen Milstein has allocated approximately $2,400,000 to Howrey and BH collectively. The



19/37

19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Trustee and BH have entered into an escrow agreement pursuant to which this $2,400,000 will

be deposited at Citibank, N.A. under the joint control of the Trustee and BH, pending resolution

of the allocation issues between them. The Trustee currently is in negotiations with BH with

respect to such allocation.

In the second case, In re Southeastern Milk Antitrust Litigation, Master File No. 2:08-

MD-1000 (SE Milk) pending in the United States District Court for the Eastern District of

Tennessee, a settlement was reached with defendant Dean Foods in the early summer of 2011.

Issues related to class certification, however, subsequently arose and delayed final approval of

the settlement pending court appointment of separate counsel for a certain sub-class. In March,

2012, the delayed settlements (with Dean Foods, Southern Marketing Agency, Inc., and James

Baird) were preliminarily approved in the aggregate amount of $145,000,000. Those settlements

received final approval from the court on May 15, 2012. The settlements are structured with the

payment of $65,000,000 to be made upon consummation and the balance to be paid pro-rata each

year over the next four years (through 2016).

On July 11, 2012, the court issued its order approving attorneys fees and expenses to all

class counsel in the total amount of approximately $48,000,000 in fees and $7,400,000 in

expenses. Bob Abrams, one of Howreys former partners who departed Howrey for BH, has

been approved by the Court to make the allocation of attorneys fees and expenses among the

various law firms acting as counsel for the plaintiffs. The allocation of fees and expenses for the

SE Milk case has not yet been determined. The Trustee anticipates that any funds allocated

collectively to Howrey/BH will be the subject to negotiations between the Trustee and BH

(including, without limitation, all issues involving the March 2011 Transfer Agreement). Even



20/37

20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

without negotiation, however, the Trustee anticipates the receipt of a substantial recovery in fees

and expenses from the SE Milk case.

The plaintiffs case against the remaining defendant, Dairy Farmers of America, is

currently set for trial in Tennessee in November 2012, although the defendant has sought

permission to appeal the class certification order to the Sixth Circuit in advance of trial.

Accordingly, any recovery from the remaining defendants in the SE Milk case is subject to the

results and delays of the pending appeal request, trial and other factors. The Trustee is taking all

actions to closely monitor the case and protect the estates interest in all potential recoveries

from the SE Milk matters.

b) Hispanic Farmers Litigation

Prior to bankruptcy, Howrey represented several hundred individual Hispanic farmers

with claims against the United States Department of Agriculture for discrimination based on

race. Howrey represented named farmers in a putative class action case called Garcia v. Vilsack,

case number 00-CV-2445 and the companion case ofCantu v. United States, case number 11-

CV-00541, both in the United States District Court for the District of Columbia. The plaintiffs

claim liability of over $1 billion. Howrey accepted the representation of these clients in these

cases on a contingent fee basis. By the time of the bankruptcy filing, Howrey had invested

approximately $30 million of time expense and out of pocket expenses in the prosecution of

these cases.

Because Howreys malpractice insurance coverage expired on December 31, 2011, and

the Howrey bankruptcy estate no longer employed any lawyers, the Trustee was compelled to

file motions to withdraw as counsel from the two cases in the U.S. District Court for the District

of Columbia. Those motions were followed by the Trustees limited joinder of a motion in the

Bankruptcy Court to reject the engagement contracts with the Hispanic farmers. To protect the



21/37

21

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

estates contingent fee interest in the cases, the Trustee opposed the efforts of the Official

Committee of Unsecured Creditors to reject the engagement contracts outright. Instead, the

Trustee argued for and obtained a Bankruptcy Court order that rejected the contracts while

preserving the rights of the Howrey estate to pursue its claims to any potential future recoveries

or funds established for the benefit of the aggrieved Hispanic farmers, based on Howreys

decade long efforts and contingent fee investment in the cases.

Given the relatively large size of the investment made by Howrey in these Hispanic

farmer cases, the Trustee and his professionals have spent an appropriate amount of effort

analyzing and evaluating the cases and trying to secure new firms to undertake the representation

of the Hispanic farmers. A team of law firms and consultants is now representing various

plaintiff Hispanic farmers in these matters. The Trustee is coordinating and supporting their

efforts. At this time, it is impossible to estimate with any certainty what recovery may result

from the litigation or other actions the Trustee may take to recover compensation for the

substantial efforts and expense incurred by Howrey and the Howrey estate for the benefit of

these Hispanic farmers. The Trustee will continue to safeguard Howreys investment and

interests in any right to compensation and recoveries.

c) The Online DVD Rental Antitrust Litigation

Howrey also continues to have a contingent fee interest in an antitrust class action

formally known as In re: Online DVD Rental Antitrust Litigation (Case No. 4:09-md-02029-

PJH, United States District Court for the Northern District of California). The Online DVD

Rental Antitrust Litigation is colloquially known as Netflix/Wal-Mart, named after two target

defendants. Like the Milk cases, Howrey lawyers working on Netflix/Wal-Mart moved from

Howrey to BH prior to the commencement of the involuntary bankruptcy proceeding.



22/37

22

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

The Trustee continues to monitor Netflix/Wal-Mart closely. Since his appointment, the

following activity has occurred in the case. First, Netflix won dismissal of the lawsuit on

summary judgment in November 2011. Plaintiffs timely appealed the district courts summary

judgment ruling to the Ninth Circuit on December 20, 2011 (Case No. 11-18034). Briefing is

complete but, based on the average time between appeal and resolution in the Ninth Circuit, the

Trustee does not expect a ruling for at least another twelve months. The Trustee continues to

monitor the appeal, but cannot estimate the likelihood of success or the amount of money, if any,

that Howrey may recover by virtue of its representation of the plaintiffs class against Netflix.

Second, the district court gave final approval to the Plaintiffs settlement of claims

against Wal-Mart for $27,250,000 on March 14, 2012, with $6,812,500 of the award being paid

as attorneys fees and $1,700,000 in expenses to class counsel. How much of this money would

be paid to Howrey has not been resolved. However, the entire attorneys fees award is also

pending in the Ninth Circuit, as multiple objectors have appealed the district courts approval of

the attorneys fees award as excessive and/or prohibited by the Class Action Fairness Act

(CAFA). Briefing of this appeal has not yet begun. Of the various objectors, it appears the

first opening brief is due in late August 2012, with the remaining briefs due in early September

2012. Plaintiffs consolidated response to the objections is currently due October 9, 2012. As

with the Netflix appeal, at this time the Trustee does not expect a ruling on the various Wal-Mart

attorneys fees appeals within the next twelve months. In the event the attorneys fees award is

upheld, however, the Trustee expects a significant recovery to the Howrey estate.

d) Other Contingency Fee Cases

The Trustee continues to actively monitor several other contingency fee litigation matters

in which Howrey maintains an interest for collection opportunities. For example, Howrey has

recently earned a contingency fee interest in insurance related litigation asserted by Howreys



23/37

23

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

former client MidAmerican Energy Company (the MEC Cases). Prior to Howreys

dissolution, the MEC Cases were transitioned to Perkins Coie LLP. MEC and Perkins Coie have

now resolved this litigation through confidential settlements, resulting in contingency fees to be

shared between Howrey and Perkins Coie. The Trustee and Perkins Coie have successfully

negotiated an agreed division of the contingency fees between Howrey and Perkins on a pro rata

basis calculated from the professional fees each firm billed on the matter, resulting in a recovery

of over $600,000 to the Howrey estate. The Trustee is documenting this arrangement with

Perkins Coie and anticipates filing a motion for Bankruptcy Court approval of the proposed

agreement in the next two weeks.

3. Equipment and Other Assets

The Trustee has undertaken to preserve and liquidate furniture, equipment and other

assets of the estate. With the down-sizing of the Howrey office space, the Trustee anticipates

liquidating the majority of Howreys remaining office furniture and peripheral equipment in the

next 30 days pursuant to the de minimis asset sale procedures approved by the Bankruptcy Court.

The Howrey estate also holds surplus server and computer equipment from the wind-

down of the data centers. The Trustee is preserving this equipment until all former client and

Howrey data is safely preserved in other forms and is then wiped from the equipment such that it

cannot be retrieved. The Trustee has requested initial offers to purchase this equipment and is

assessing means to wipe the data stored on it. The Trustee anticipates these procedures to be

accomplished and a sale of this equipment before year end.

B. Claims Investigation, Analysis and Recovery

In addition to the expected significant proceeds from Howreys interest in the various

contingency fee matters discussed above, creditor recoveries in this bankruptcy case will be

significantly determined by the resolution of the estates potential claims against third parties,



24/37

24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

including those against former Howrey partners and their successor law firms, potential breach

of contract actions and avoidance actions under the Bankruptcy Code. The Trustee and his

professionals are developing and pursuing all the estates potential litigation claims.

1. Preference and Fraudulent Transfer Litigation

Evidence available to and marshaled by the Trustee indicates that various former partners

of Howrey received payments and distributions either at a time when Howrey was insolvent

and/or otherwise in excess of amounts properly distributable at the time they were made. Such

over-distributions likely constituted fraudulent transfers, breaches of fiduciary duty, and breaches

of Howreys partnership agreement or are otherwise actionable. The Trustees financial and

legal advisors are completing a comprehensive analysis of these potential claims. The Trustee

anticipates that settlement proposals to resolve these claims will be forthcoming in the coming

months and that barring amicable resolutions, litigation will likely be commenced seeking

recoveries on such claims for the estate.

In addition, Howrey made payments to certain creditors in the ninety-day period

preceding the Petition Date that the Trustee may recover as preferences under Bankruptcy Code

547. The Trustees consultants and legal team have completed an initial analysis of the

potentially preferential payments and anticipate sending out demand letters to preference

recipients within the next thirty days to initiate collection for the benefit of the Howrey estate.

2. Unfinished Business Claims

The Trustee has been investigating and gathering information related to Howreys former

representation of clients in matters that were unfinished at the time that former Howrey

partners departed the firm taking such unfinished business with them to successor law firms.

In July 2012, the Trustee filed an omnibus motion for authority to issue Federal Rule of

Bankruptcy Procedure 2004 (Rule 2004) subpoenas to approximately seventy law firms that



25/37

25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

may have received profits from Howreys unfinished business. The Bankruptcy Court granted

this motion and the Trustee is in the process of contacting and/or serving such law firms with

subpoenas for the production of certain documentation, data and information related to Howreys

unfinished business. This discovery will allow the Trustee and his professionals to evaluate

potential causes of action, including unfinished business related claims.

The Trustee anticipates the expeditious conclusion of the claim investigation process and

the immediate pursuit, of all viable claims through either settlement or litigation.

3. Other Potential Claims and Litigation

The Trustee has also been evaluating various contracts entered into by the Debtor pre-

petition which have been breached by the respective counter-parties. The Trustee and his

professionals continue to undertake legal research, document review and analysis of these

potential claims and anticipate arriving at evaluations and assessments related to such claims in

the coming months, after which appropriate follow up action will be taken. Moreover, the

Trustee and his professionals are currently investigating various acts and events, that occurred

both before the Petition Date and during the gap period prior to the order for relief, that may

have resulted in damages to the estate. It is anticipated that Rule 2004 examinations and

subpoenas will be sought in the near future with respect to former lawyers and employees of the

Debtor in order to determine and assess the viability of any claims for damages as a result of

such actions or transactions.

C. Asset Disposition

The Trustees primary goal is to maximize the value of the Howrey estate. This includes

disposing of assets of the estate in a manner that ensures their highest value.



26/37

26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

1. Art Collection Sales

Prior to the Trustees appointment, Howrey placed its remaining art work assets with five

separate art dealers, brokers and storage facilities in California, Illinois and Washington, D.C.

The Trustee is consolidating the number of third-party vendors responsible for the disposition of

Howreys art collection. One of these vendors, Bonhams, is currently assessing the remaining

art assets and will present a recommended course of action to the Trustee that will maximize the

recovery for these assets. The Trustee anticipates implementing a comprehensive sales process

for the remaining art assets in the next thirty to sixty days.

2. Other Liquidations and Settlements

The Trustee regularly evaluates proposals by claimants to settle disputes with the Howrey

estate on terms that benefit Howreys creditors. In two cases, Howrey entered settlements with

storage facilities to abandon the contents of those facilities to the storage vendors in exchange for

those vendors abandoning both pre-petition and post-petition claims for storage costs. The

Trustee obtained Bankruptcy Court approval of the settlements with Extra Space Management,

Inc. on March 2, 2012, and with Ortiz Brothers Moving and Storage on July 2, 2012.

D. Defense of Claims

1. Proofs of Claim

The Trustee continues to monitor proofs of claim as they are received. The general bar

date for proofs of claim passed on October 11, 2011. Extensions of the bar date were granted for

certain plaintiffs in the WARN Act litigation described below and Citibank, pursuant to the

terms of cash collateral orders approved by the Bankruptcy Court.

As part of the plan formulation and confirmation process and before any distributions to

general creditors, the Trustee will complete a full analysis of all asserted claims and will file

objections where appropriate to ensure that no claims are improperly allowed.



27/37

27

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

2. The WARN Act and Warner Investments Adversaries

On April 12, 2011, a former Howrey employee named Stephanie Langley brought a

putative class action against Howreys estate alleging violations of the WARN Act. This case is

pending before the Bankruptcy Court as adversary proceeding 11-03065. Pursuant to a June 28,

2012 order, the bar date for filing of WARN Act claims on behalf of the Langley putative class

was extended to October 1, 2012, and the Court indicated that no further extensions would be

granted absent a written showing of cause. A status conference is scheduled in the Langley

WARN adversary for October 15, 2012, at which time the Trustee and counsel for the plaintiffs

will report the status and plan for advancing the resolution of the claims at issue.

Prior to the Trustees appointment, the Debtors former counsel commenced litigation

arising from a non-residential lease agreement against Warner Investments, L.P. (Warner)

which is currently pending before the Bankruptcy Court in adversary proceeding 11-03170.

Warner has asserted claims against the estate and filed requests for payment of administrative

rent. In light of the current cash position of the estate, the Trustee and Warner have agreed to

stay the adversary proceeding and Warners administrative expense motion several times. Most

recently, the parties agreed to extend the stay to February 21, 2013.

VI. RECOVERY TO CREDITORS AND A CHAPTER 11 PLAN OF LIQUIDATION

The benefit of liquidating the Howrey estate in chapter 11, rather than chapter 7, is to

allow the flexibility and tools provided by the plan formulation and confirmation process for the

resolution of the estates potential litigation claims. It is too early in the case for the Trustee to

predict the recovery that will ultimately be paid to all creditors. However, the Trustee at this

time believes that ultimately there will be sufficient estate assets to satisfy all potential



28/37

28

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

administrative 1 and secured claims in full and provide a recovery to priority and general

unsecured creditors.

The Trustee presently holds approximately $1,300,000 in cash and significantly more in

unliquidated and contingent assets, including accounts receivable, potential litigation claims,

contingency fee interests and other assets described herein. Most, if not all, of the current cash

on hand and many of these assets may constitute the collateral of Citibank, which has allowed

the Trustee to use its cash collateral pursuant to interim cash collateral orders, stipulations and

related budgets. Accordingly, the Trustee anticipates having sufficient funds to pay ongoing

administrative costs subject to budget limits.

The ultimate recovery to secured and unsecured creditors will depend primarily on two

factors: (i) the proceeds the Trustee recovers from the Debtors interest in the contingency fee

cases, including the Milk cases; and (ii) the recoveries the Trustee obtains from the potential

litigation claims described above.

As the Trustee continues to evaluate the assets of the estate, including potential litigation

claims, the full scope and potential distributions from the Howrey estate will become more

predictable within certain ranges. Until then, creditors and parties-in-interest benefit from a

careful approach that maximizes the value for the estate. The Trustee will supplement this report

with additional information as the case progresses.

1 In addition to ongoing professional and operational expenses, the estate faces potential administrative expenseclaims in excess of $10 million from landlords and other potential claimants. While these administrative expenseclaims may be in dispute, if allowed, they could be entitled to the same priority as any other claims allowed underBankruptcy Code 503(b). In that event, there are currently insufficient liquid assets to immediately satisfy all ofthose administrative expense claims in full.



29/37

29

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Dated: August 20, 2012

/s/ Allan B. Diamond, Trustee

Allan B. DiamondChapter 11 Trustee of Howrey LLP

and

Howard D. Ressler, Esq. (pro hac vice)Stephen T. Loden, Esq. (pro hac vice)Jason M. Rudd, Esq. (pro hac vice)Christopher R. Murray, Esq. (pro hac vice)DIAMOND MCCARTHY LLP909 Fannin, 15th FloorHouston, TX 77010Telephone: 713-333-5100

Facsimile: [email protected]@[email protected]@diamondmccarthy.comCounsel for Allan B. Diamond,


Eric A. Nyberg, Esq. (Bar No. 131105)KORNFIELD, NYBERG, BENDES& KUHNER, P.C.Chris D. Kuhner, Esq. (Bar No. 173291)1970 Broadway, Suite 225Oakland, CA 94612Telephone: 510-763-1000Facsimile: [email protected]@dornfieldlaw.comLocal Counsel for Allan B. Diamond,




30/37

30

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

CERTIFICATE OF SERVICE

__X__ (CM/ECF) The document was electronically served on the parties to this action via themandatory United States Bankruptcy Court of California CM/ECF system upon filing of abovedescribed document.:

SEE ATTACHED SERVICE LIST

__X__ (ELECTRONIC MAIL SERVICE) By electronic mail (e-mail) the above listeddocument(s) without error to the email address(es) set forth below on this date.


__X__ (UNITED STATES MAIL) By depositing a copy of the above-referenced documents formailing in the United States Mail, first class postage prepaid, at Houston, Texas, to the partieslisted on the Service List attached hereto, at their last known mailing addresses, on August 20,

2012.


__ __ (OVERNIGHT COURIER) By depositing a true and correct copy of the abovereferenced document for overnight delivery via Federal Express, at a collection facilitymaintained for such purpose, addressed to the parties on the attached service list, at their lastknown delivery address, on the date above written.

__ __ (COURIER SERVICE) By providing true and correct copies of the above referenceddocuments [with copies of the supporting detailed invoices/attorney time records for the FinalFee Application] via courier delivery, to the following on or about ________________:

__ __ (FACSIMILE) That I served a true and correct copy of the above-referenced document viafacsimile, to the facsimile numbers indicated, to those people listed on the attached service list,on the date above written.

/s/ Jason M. Rudd

Jason M. Rudd



31/37

31

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26 Case: 11-31376 Doc# 765 Filed: 08/20/12 Entered: 08/20/12 12:17:41 Page 31 of37


32/37

32

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

VIA CM/ECF:

United States Trustee Minnie Loo, Esq.Donna S. Tamanaha, Esq.Office of the U.S. Trustee

235 Pine Street. 7

th

FloorSan Francisco, CA 94104-3484Email:[email protected]

Email:[email protected]

Chapter 11 Trustee Allan B. Diamond

Diamond McCarthy, LLPTwo Houston Center909 Fannin Street, Suite 1500Houston, Texas 77010

Email: [email protected]

Counsel for the Chapter 11 Trustee Diamond McCarthy, LLPHoward D. Ressler, Esq.Email: [email protected]

Stephen T. Loden, Esq.Email: [email protected]

Jason M. Rudd, Esq.Email:[email protected]

Kornfield Nyberg Bender & Kuhner P.C.Eric NybergEmail: [email protected] D. KuhnerEmail: [email protected]

Debtors Counsel Wiley Rein LLPH. Jason GoldValerie P. MorisonDylan G. TracheEmail:[email protected]



Murray & MurrayRobert A. FranklinCraig M. PrimJenny Lynn FountainEmail: [email protected]




33/37

33

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26


Duane Morris LLP Geoffrey A. Heaton, Esq.Email: [email protected]

Aron M. Oiner, Esq.Email: [email protected]

Law Offices of Latham & Watkins Kimberly A. Posin, Esq.Email: [email protected]

Murray & Murray Craig M. Prim, Esq.Email: [email protected]

Robert A. Franklin, Esq.Email: [email protected]

Jenny L. Fountain, Esq.


Official Committee of Unsecured Creditors Whiteford, Taylor & Preston LLPBradford F. Englander, Esq.Email: [email protected]

John F. Carlton, Esq.Email: [email protected]

Justin P. Fasano, Esq.Email:[email protected]

Counsel for The Irvine Company, LLC Allen Matkins, et al.


Counsel for Creditor Ctitbank, N.A. Paul, Weiss, Rifkind, Wharton &

Garrison

Larry Peitzman, Esq.Email: [email protected]

Counsel for Creditor Protiviti, Inc. Pachulski, Stang, Ziehl & Jones

John D. Fiero, Esq.Email:[email protected]

Counsel for Creditor Oracle America, Inc. Buchalter Nemer

Shawn M. Christianson, Esq.Email: [email protected]

Counsel for Creditor U.S. Bank, N.A., Perkins Coie LLP



34/37

34

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

as Trustee David J. Gold, Esq.Email: [email protected]

Counsel for Attorneys Liability Assurance Perkins Coie LLP

Society, Inc.,A Risk Retention Group Alan D. Smith, Esq.


Counsel for Creditors Advanced Discovery Trepel McGrane Greenfield LLP

LLc, Give Something Back, Inc., Jan Brown Maureen A. Harrington, Esq.& Associates, Kent Daniels & Associates, Inc., Email: [email protected]

L.A. Best Photocopies, Inc., Western Christopher D. Sullivan, Esq.Messenger Service, Inc. Email: [email protected]

Counsel for BP/CGCENTER I, LLC Allen, Matkins, Leck, Gamble and

MalloryWilliam W. Huckins


Counsel for Creditor Warner Investment, L.P. Luce, Forward, Hamilton & Scripps

Michael A. Isaacs, Esq.Email: [email protected]


Counsel for Creditor Dewey & LeBoeuf LLP Dewey and LeBoeufPaul S. Jasper, Esq.Email:[email protected]

Counsel for Creditor Iron Mountain Bartlett, Hackett and FeinbergInformation Management Inc. Frank F. McGinn, Esq.


Counsel for Creditor Hines REIT 321 DLA Piper LLP

North Clark Street, LLC Frank T. Pepler, Esq.Email: [email protected]

Counsel for Creditor Stephanie Langley Outten and Golden LLPRene S. Roupinian, Esq.Email: [email protected]

Counsel for Creditor Stephanie Langley Law Offices of James D. WoodJames D. Wood, Esq.Email:[email protected]



35/37

35

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Counsel for Creditor Pension Benefit Office of the Chief CounselGuaranty Corp. Lawrence F. Landgraff, Esq.


Counsel for Interested Party Connecticut Schnader Harrison Segal and Lewis

General Life Insurance Company Melissa Lor, Esq.Email: [email protected]

Counsel for Interested Party Ad Hoc MacConaghy and Barnier

Committee of Certain Former Howrey John H. MacConaghy, Esq.Partners Email: [email protected]

Monique Jewett-Brewster, Esq.Email: [email protected]

Counsel for Creditors Advanced Discovery McGrane LLP

LLC, Give Something Back, Inc, Jan Brown William McGrane, Esq.And Associates, Kent Daniels and Associates Email: [email protected]

Inc., L.A. Best Photocopies, Inc., Western

Messenger Service, Inc.

Counsel for Interested Party Connecticut Melissa LorGeneral Life Insurance Co. Email: [email protected]

Counsel for Creditor Knickerbocker Seyfarth Shaw LLPProperties, Inc. XXXIII Scott Olson, Esq.


Counsel for Creditor Banc of America Law Offices of Serlin and Whiteford

Leasing & Capital, LLC Mark A. Serlin, Esq.Email: [email protected]

Counsel for Creditor Texas Comptroller Bankruptcy & Collections Division

of Public Accounts Kimberly Walsh, Esq.Email: [email protected]

Counsel for Creditor 200 S. Main Street Ballard Spahr Andrews and Ingersoll

Investors, LLC Rebecca J. Winthrop, Esq.Email: [email protected]

Penny M. Costa, Esq.Email: [email protected]

Counsel for Creditor Citibank, N.A. Peitzman Weg LLPLarry Peitzman, Esq.



36/37

36

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26


Counsel for Amy J. Fink Jones DayRobert A. TrodellaEmail: [email protected]

VIA EMAIL:

Counsel for Creditor Citibank, N.A. Paul, Weiss, Rifkind, Wharton &

Garrison

Kelley A. Cornish, Esq.Email: [email protected]

Diane Meyers, Esq.Email:[email protected]

Jacob J. Adlerstein, Esq.Email:[email protected]

Ballard Spahr LLP

Matthew Moncur, Esq.Email: [email protected]

EMC Corporationc/o Receivable Management ServicesSteven Sass, Esq.Email: [email protected] Rowland, Esq.Email: [email protected]

Olin CorporationS. Christian MullgardtEmail: [email protected]

VIA U.S. MAIL:

Richard Burdge, Esq.The Burdge Law Firm PC500 S Grand Ave Ste 1500Los Angeles, CA 90071



37/37

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

Jeffrey C. Wisler, Esq.Connolly Bove Lodge & Hutz LLP1007 North Orange StreetWilmington, DE 19899

Attorneys for Interested Party Connecticut General Life Insurance Company

IKON Office SolutionsRecovery & Bankruptcy Group3920 Arkwright Road, Suite 400Macon, GA 31210

EMC Corporationc/o RMS Bankruptcy Recovery ServicesAttn: President or General/Managing AgentP.O. Box 5126

Timonium, MD 21094-5126

Salter & Company LLC4600 East-West Highway, Suite 300Bethesda, MD 20814

County of Loudoun VirginiaBelkys Escobar1 Harrison St., S.E. 5th Fl.Leesburg, VA 20175-3102

Matura Farrington Staffing Services, Inc.700 So. Flower Street, Suite 2505Los Angeles, CA 90017

Guy DavisProtiviti Inc.1051 East Cary Street, Suite 602Richmond, VA 23219

George E. Shoup, IIIDevelopment Specialists, inc.6375 Riverside Drive, Suite 200Dublin, OH 43017-5373

Kyle EverettDevelopment Specialists, Inc.235 Pine Street, Suite 1150San Francisco, CA 94104

How Rey Report One

Documents

Transcript of How Rey Report One