"Nobody's happy about this," said Jacob R. Brandzel, a Laventhol partner, who has been running the company as debtor in possession since it entered Chapter 11 bankruptcy. Brandzel crafted the plan, which must be approved by the court, in consultation with major creditors.
"I'm not saying people are jumping up and down with joy," he said of the former partners. "I think they're relieved that this is behind them . . . but they're not happy."
Brandzel said his own assessment comes to more than $100,000.
Richard Ferst, formerly managing partner of Laventhol's Philadelphia office, yesterday described the plan as "fair and equitable" and said most former Laventhol employees would struggle to make the payments but probably would survive financially.
"I think the dread of personal bankruptcy, which was the immediate fear we all had when this (bankruptcy filing) happened a year and a half ago, has dramatically subsided," said Ferst, now a partner in Arthur Andersen's Philadelphia office.
Ferst would not reveal his own assessment, but his lawyer, Marvin Krasny, said the approximately 15 Laventhol partners in Philadelphia that he represented had been assessed anywhere from $50,000 to $250,000 each, with those at higher management levels charged the most.
"I think it will be difficult on the management people," he said. "This will be a big chunk of money, and I don't think they're as employable (because of) their age and what happened" to Laventhol.
"It's going to be very difficult for me," said Ferst. "This is a great deal of money for me. But the last thing in the world that I want to do in this community, which has been so good to me, is walk away from my responsibilities, and I will not. . . . I'm 47. I'm not a kid anymore."
