Thelen law firm files Chapter 7 after Citi cutoff

[forum_admin]

* Firm once had more than 600 lawyers

* Says Citigroup will no longer advance funds (Recasts third paragraph, adds Citigroup declining comment)

Thelen LLP, a U.S. law firm that once had more than 600 lawyers, said it filed for Chapter 7 bankruptcy liquidation after Citigroup Inc (C.N), a large creditor, cut off needed funding.

The 85-year-old firm said Citigroup "is no longer willing to advance funds for the cost of collection and (to) wind down operations," or to fund the costs of a Chapter 11 proceeding, according to a filing on Thursday with the U.S. bankruptcy court in Manhattan."

Thelen also said its estimated assets "will be insufficient to result in any meaningful payment" to unsecured creditors, in light of Citigroup's $7.2 million secured loan.

A Citigroup spokeswoman declined to commen.