We learned that the dissolution of Testa, Hurwitz & Thibeault would not be as smooth as had been previously thought. Eight former partners filed a petition to put THT into involuntary bankruptcy protection under Chapter 11, in order to bring the firm’s liquidation process out into the public sphere.
Each of the eight left long before the large-scale departures began last December (see previous story for chronology), at which point they agreed to deferred payments related to money remaining in their THT capital accounts. Following the firm’s dissolution, however, the ex-partners grew concerned that the firm did not have enough cash on hand to pay off both creditors and the capital account holdover.
Edwin Miller, who still has approximately $222,000 plus interest in his capital account, is credited by sources with spearheading the effort, and for trying to recruit more than one dozen ex-partners. Some who declined to join say that the move is unseemly, and that it only will move all former THR partners farther to the back of the creditor line.
Among those who filed, Eric Deutsche has the most money sitting in a THT capital account ($504,220 plus interest), while Richard Sanders has the least ($19,186 plus interest). Other plaintiffs include Tom Beaudoin, David Davenport, Leslie Davis, Gordon Hayes and John Hession.
The ex-partners are being represented by John Monaghan of Holland & Knight, while THT has retained Harold Murphy of Hanify & King.