If approved, reports the Reuters news agency, the settlement would mark the first major recovery for Dewey’s creditors who are owed at least $315m, according to court documents.
Under the final proposed offer, the former partners had to contribute at least $50m by 5pm yesterday; they did so by 2.45pm. Reuters reports that according to a source close to the matter, at least 300 partners out of a possible 672 signed the agreement.

Fierce debate

The terms of the settlement have generated fierce debate for months, with Dewey’s lower-earning partners critical of a deal in which they were asked to make the same high repayments as top earners in management. But this deal might not be the final act in the settlement, as a committee representing former partners asked a federal bankruptcy judge to cast an eye over the deal before it is given court approval.
David Friedman, a lawyer representing the former partners, said: ‘Without such an investigation having been undertaken, there is no way that the debtor -- nor anyone else, including the court -- can formulate an informed view as to whether the [settlement] is within the realm of reasonableness.’
One former partner told the news agency he was ‘optimistic’ about yesterday’s announcement, despite having to pay a significant amount of money. ‘I would have been extraordinarily depressed if this threshold hadn't been reached,’ he said.