Laventhol to file for bankruptcy

November 19, 1990|By New York Times

NEW YORK -- The roughly 350 partners of Laventhol & Horwath, the nation's seventh-largest accounting firm, voted over the weekend at a hastily arranged emergency meeting to file for Chapter 11 bankruptcy protection and disband the firm, former Laventhol partners said last night.

Partners of the troubled firm, meeting in Houston over the weekend, rejected a proposal to pump $15 million in funds into the company, according to partners at the meeting.

Without the extra money, the firm can't keep operating. Laventhol's main bankers, Fidelity Bank of Philadelphia and New York's Chase Manhattan Bank, apparently weren't willing to grant additional loans.

Philadelphia-based Laventhol has been under financial strain because of several lawsuits that accused the firm of having done poor work on a number of audits and consulting projects, including a multimillion-dollar lawsuit in Charlotte, N.C., over its audit of the PTL ministry of Jim Bakker.

Laventhol employs about 3,300 people across the country, including Baltimore. Plans for the Baltimore office at 6 St. Paul Centre are uncertain, according to Jeffrey Picker, the managing partner for the office. The local operation has 50 employees, he said.

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