Dewey files for Chapter 11 "During the first quarter of 2012, the firm was confronted with liquidity constraints that led to the precipitous resignation of over 160 of the firm's 300 partners by May 11," the New-York based firm said. Dewey listed liabilities in the range of $100m to $500m, according to the filing. It had already terminated 433 of its 533 New York employees earlier this month, according to the state's labor department. The firm's collapse is expected to be the subject of years of court proceedings, and a number of former partners have already retained lawyers to represent them. Monday's filing follows months of turbulence, as wave after wave of partner defections shattered the high-profile firm from within. In April, the Manhattan District Attorney's office launched a criminal probe of former firm chairman Steven Davis. He has denied any wrongdoing. The result of a 2007 merger between Dewey Ballantine and LeBoeuf, Lamb, Green & MacRae, Dewey & LeBoeuf had about 1,450 attorneys at its peak, according to The National Law Journal. But the firm was eventually undone by a combination of the economic downturn, excessive compensation and governance problems, according to former partners and others in the industry. In particular, Dewey's management promised millions in packages to about 100 partners, according to the court filing, leaving it strapped for cash when revenues fell during the recession. The London and Paris offices of the firm are operated through a separately incorporated UK entity, which was placed into administration on Monday. Administration is a UK legal process under court supervision, broadly similar to chapter 11. The UK partnership is following broadly the same approach as that of Dewey in the United States, the firm said. The firm had two dozen offices worldwide, including in Washington, Los Angeles and London. Some of the firm's biggest clients included General Motors, eBay, Novartis, Ambac and Berkshire Hathaway Reinsurance Division.