Oh heck no, they were one of the biggest firms in NYC.
Here’s the last paragraphs. You’re correct in your first assessment as to who goes.
“Heller distributes its income to shareholders at year end. As a result, at the beginning of each year, it has to tap a bank credit line to pay salaries, rent and other expenses. As revenue rolls in, it pays down the credit line. It is usually finished by August.
Last year, however, revenue dropped off so much that it had trouble paying down its loan. By September, its debt hovered around $30 million, according to a lawyer knowledgeable about the finances. The formal departure of the intellectual-property group on Sept. 14 put Heller in breach of a loan covenant that limited the number of shareholders who could depart in a 12-month period.
On Sept. 26, with banks controlling how Heller spent its money, shareholders voted to dissolve the firm. “Employees were crying about it,” says Michael Charlson, a former shareholder. “There was an amazingly profound sense of emptiness.”
Heller hoped to wind down outside of federal bankruptcy court. But on Dec. 29, after failing to reach agreement with its lenders about terms of repayment, it sought Chapter 11 bankruptcy protection.
Most of Heller’s shareholders have landed at other large firms. But as of December, more than 300 former Heller employees, mostly nonlawyers, were still looking for work, according to a report by Heller’s dissolution committee.”