- As the novel coronavirus sweeps the globe, it will fall on a cadre of elite attorneys at the nation's top law firms to help guide companies through an unprecedented hit to revenue.
- Restructuring and bankruptcy attorneys are working around the clock to field calls from clients.
- Outside of being the go-to advisors to help corporate execs through this turmoil, these attorneys represent a bright spot in an otherwise grim picture in their own profession.
- Business Insider identified 10 restructuring and bankruptcy lawyers to keep tabs on as the business landscape shifts dramatically in 2020.
- These attorneys have played leading roles on everything from the Detroit bankruptcy, to Toys R Us, to Lehman Brothers.
- Click here for more BI Prime stories.
As the novel coronavirus sweeps the globe, it will fall on a cadre of elite attorneys at the nation's top law firms to help guide companies through an unprecedented hit to revenue.
Restructuring and bankruptcy attorneys are working around the clock to field calls from clients about loan covenants, payment obligations to creditors and — in some instances — the prospect of filing for bankruptcy.
Outside of being the go-to advisors to help corporate executives through this turmoil, these attorneys represent a bright spot in an otherwise grim picture in their own profession, with law firms considering pay cuts and staff reductions as clients push back on fees in other areas of legal work.
"Clients are now in cash-flow crunch and are pushing back on paying invoices until Q3," said Heidi Gardner, a lecturer at Harvard Law School and advisor to law firms. But, she said, "I don't think they are cutting legal spend in areas that are mission critical."
Business Insider, based on talks with attorneys, consultants, and recruiters, along with a review of some of the largest bankruptcies over the past decade, identified 10 restructuring and bankruptcy lawyers to keep tabs on as the business landscape shifts dramatically in 2020.
These attorneys have played leading roles on everything from the Detroit bankruptcy, to Toys R Us, to Lehman Brothers.
For matters that wind up in Chapter 11 court proceedings, the fees they charge are lucrative. The federal government has called on firms to provide more transparency into their billing practices.
Weil Gotshal, for instance, earned as much as $399 million for its work handling the Lehman Brothers bankruptcy, while Detroit's bankruptcy cost the city $178 million in fees and expenses for teams of lawyers and consultants, with the top biller being Jones Day.
We don't yet know what kinds of profits the coronavirus will heap on firms like Jones Day in the coming years, but we do know restructuring is already becoming a busy field and coronavirus has yet to reach its peak in the United States.
"The number of new distressed matters rivals 2008," said Rachel Strickland, the co-chair of the restructuring practice at Willkie Farr & Gallagher. "The onset of new matters due to COVID-19 has been much, much faster."
Susheel Kirpalani, the head of Quinn Emanuel's bankruptcy practice, said that a wave of bankruptcies and restructurings will hit a variety of sectors, including all consumer facing sectors with high fixed costs.
"I don't think it will be focused on any particular industry," he said. "It will be the weakest in every industry."
Here to sort it all out are the 10 attorneys who sources tell us will be at the center of the action going forward, and a sampling of some of their most high-profile past work. Representations listed include both creditors and debtors as clients.
If you have a tip about a restructuring matter or how coronavirus is affecting business, we want to hear from you. Contact this reporter at csullivan@businessinsider.com, DM on Twitter @caseyreports, or Signal message at 646 376 6017.
Bruce Bennett, Jones Day
Restructuring and bankruptcy matters:
- Pacific Gas & Energy Corporation
- Caesers Entertainment Operating Corp
- Energy Future Holdings
- Los Angeles Dodgers
- General Motors
Education:
Harvard Law School
Paul Basta, Paul Weiss
Restructuring and bankruptcy matters:
- Sears Holdings Corporation
- A&P Supermarkets
- Barneys
- Caesers Entertainment Corp
Education:
George Washington University Law School
Ira Dizengoff, Akin Gump
Restructuring and bankruptcy matters:
- Frontier Communication Corporation
- Sanchez Energy Corporation
- Payless Holdings
- Sears Holdings Corporation
- iHeartMedia
Education:
Benjamin N. Cardozo School of Law
Marshall Huebner, Davis Polk
Restructuring and bankruptcy matters:
- New York Fed and U.S Treasury Department in bailout of AIG
- Ford Motor Company in $10 billion balance sheet restructuring
- Patriot Coal
- Star Tribune Co
- Delta Air Lines
Education:
Yale Law School
Susheel Kirpalani, Quinn Emanuel
Restructuringa and bankruptcy matters:
- Court-appointed examiner and mediator in Dynegy
- RadioShack
- SemGroup
- LyondellBasell
- Sentinel Management Group
Education:
Fordham University School of Law
Ray Schrock, Weil Gotshal
Restructuring and bankruptcy matters:
- Fairway Group Holdings Corporation
- PG&E Corporation
- Sears Holding Corporation
- J.Crew Group Inc
- Aeropostale Inc
- Ally Financial
Education:
IIT Chicago-Kent College of Law
Edward Sassower, Kirkland & Ellis
Restructuring and bankruptcy matters:
- Energy Future Holdings Corp
- NRG Energy Inc
- Toys R Us
- Sbarro Inc
- Capmark Financial Group
Education:
Duke University School of Law
George Davis, Latham & Watkins
Restructuring and bankruptcy matters:
- Weatherford International
- Hexion Inc
- LyondellBasell
- Carmike Cinemas
- Marvel Entertainment
Education:
Hofstra University School of Law
Dennis Dunne, Milbank
Restructuring and bankruptcy matters:
- Enron Corp
- Lehman Brothers
- Madoff liquidation
- Takata restructuring
- Fruit of the Loom
- Virgin America
Education:
New York University School of Law
Rachel Strickland, Willkie Farr
Restructuring and bankruptcy matters:
- Trump Entertainment Resorts
- Broadview Networks
- Adelphia Communications
- Journal Register Company
Education:
New York University School of Law
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