Stroock & Stroock & Lavan has the votes to discharge its pension obligation, clearing the way for a possible merger for the New York-founded firm.
The firm, which has struggled to stem partner departures, said on Monday that it has the votes it needs from retired partners to buy out its pension, which had been seen as a major hurdle in Stroock’s quest to complete a merger.
“We have secured the votes needed to end our pension obligation and are optimistic about achieving a desired merger,” said Stroock co-managing partner Alan Klinger in a statement.
The firm’s annual unfunded pension liability was upward of $8 million annually, but its current annual liability sits around $6 million, a firm spokesperson said on Friday. The deadline for pensioners to cast their vote was Aug. 8.
With their pension obligation gone, the firm now faces an easier road in attempting a combination. Stroock, which recently ended merger talks with Nixon Peabody, has reportedly been in talks with Steptoe & Johnson, Squire Patton Boggs and McGuireWoods.
News of the successful vote came as the firm suffered more lateral losses. Richard Stern, the chair of Stroock’s restructuring and bankruptcy practice, jumped to Morgan Lewis & Bockius on Monday along with four other attorneys.
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