333 Bush Files Order of Attachment

An update to the ongoing suit between 333 Bush Associates NF L.P., Heller’s San Francisco landlord and Heller Ehrman:

On Friday, December 19, 2008, 333 Bush filed an Order for Writ of Attachment with a hearing on such order taking place today, December 22.

The amount is now down to $48,025,767 according to the filing and on page 2 it states that Defendant Heller Ehrman shall “transfer to levying officer possession of  . . .” , among other things, “Any and all cash deposits, accounts receivable, furniture, fixtures, and equipment held by Defendant or its agents, assigns, liquidation committees, affiliated entities, or creditors.”

In addition, in an attachment to the writ, Plaintiff 333 Bush states that the Order for Issuance of Writ of Attachment does not affect:

“1.  payments made on debt owed as of the date of the Order to Bank America; and

2.  funds as required not to exceed $573,000 every two weeks for winding up operations of Heller LLP.”

And 333 Bush has filed a $10,000 surety bond as is typical in this type of case.

I have questions as to this latest action, namely:

- there is no mention of Citibank, N.A. in the filings.  Does this mean that the Citibank loans are paid off and the Dissolution Committee is on the hook only to Bank of America as of today?

- and does this place 333 Bush’s claims as priority before those of Heller employees that are still owed accrued vacation, WARN Act monies and other wages?

Heller Bankruptcy Imminent?

And what does this mean not only for those of us capsized earlier in the year but those currently still working for Heller Ehrman?

Your cruise director has it on very good authority from sources within Heller that the banks basically emptied out Heller’s bank accounts yesterday.  This was probably done in anticipation of Heller being forced into bankruptcy by various lawsuits – most recently its San Francisco landlord.

We’ll have more information as it develops.

Heller Ehrman Sued By DC Office Landlord

I’m not sure whether this on just slipped by us and the rest of the media or what.  But back on October 29, 2008, Mept St., Matthews LLC – the landlord of Heller’s DC office – filed suit in San Francisco Superior Court. 

In Case # CGC-08-481353, according to Mept, which is being represented by Seyfarth Shaw LLP, Heller has not paid rent since August 1, 2008 with the monthy rate being $406,888.13.  The complaint asks for at least $31M in compensation for early termination of the lease.

With the filing by Heller’s SF landlord and the David Simon suit in San Francisco Superior Court, I think the prevailing winds indicate a bankruptcy filing very soon by the Dissolution Committee.

Follow-Up To Heller Landlord Lawsuit

The full article about the lawsuit filed by 333 Bush Associates NF L.P., owner of 333 Bush Street where Heller Ehrman was headquartered in San Francisco can be found here.  The Daily Journal site requires a subscription to access the article.

In CGC-08-482519 333 BUSH ASSOCIATES,NF L.P. A DELAWARE LIMITED VS. HELLER, EHRMAN WHITE & MCAULIFFE LP A CALIFORNIA et al the cause of action is listed as Contract/Warranty and the docket information can be found here.

333 Bush is  seeking damages of at least $85 million and claims $753,614.94 in past due rent plus other fees.