In the News Articles section today, I’ve posted a link to Heller Collects Only $8M of $77M from The Recorder. The reporter, Amanda Royal, who has covered many recent Heller Ehrman developments, reviews the latest Operating Report filed by Heller on February 28, 2009 and makes this observation:
Heller Ehrman has “collected only $8 million of the $77 million owed to it by clients since its bankruptcy filing nearly three months ago . . “
In addition, as I pointed out yesterday, Heller has marked about $12m as doubtful accounts. Others have said it is very optimistic for Heller to think that they will collect 85% of their accounts receivable and only “write off” 15%. Some have even said Heller will be lucky to collect 25% of the $77m.
This leads me and others to believe that the idea of there being “plenty of money to go around when all is said and done” is bullshit.
I also have to wonder why type of “deals” the departing shareholders struck with their clients as they crept off to other firms like Orrick, Cooley, and Covington and Burling. Did they offer a discount on existing Heller Ehrman billings? A total write-off? Was that part of the “deal” to go to these firms and bring their clients along?