Lesson Taught By Fall of Heller & Others: Banks Rule
Not quite a year after the collapse of Heller Ehrman, managers of other law firms are still digesting the lessons learned.
Among them are the importance of maintaining an adequate capital reserve and avoiding too much short-term debt, reports the Am Law Daily, relying on information from a Recorder article.
“Certainly Heller and the other law firm failures from last year were important lessons in minimizing short-term debt, because in every death story from those law firms, the banks rang the bell,” Keith Wetmore tells the Recorder. He is the chairman of Morrison & Foerster.
Additional coverage:
ABA Journal: “Loans and Moans”
ABAJournal.com: “Heller Creditors Seek $24M in Pension, Argue Firm was in Red As Early As ‘07”
ABAJournal.com: “Thelen Files for Chapter 7 Bankruptcy, Claims Up to $100M in Liabilities”
