Is restructuring/bankruptcy slow right now? I was at an event last week, and the managing partner at one of the major players in the industry told me the Rx market is very slow despite the statistics. But according to Octus Q1 league tables, large bankruptcy filings are on par with this time last year. Who should I trust?

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(1) chances are most of the “restructuring” people you are thinking of are chapter 11 people. LME is still busy and chapter 11 really slowed down because of how expensive it is. Most of the shops are set up that the restructuring/chapter 11 team don’t really get deeply involved in LME deals.
(2) Within the chapter 11 filings, legal advisors for these deals are no longer concentrated amongst just a few shops. There have been a few large filings that are taken by shops that we didn’t consider as competitors before (Wilkie, McDermott). There are even shops that we previously viewed as local counsel are handling some of the big filings on their own now. I think at least partially it’s also driven by the high costs of the traditional big debtor shop.
(3) Octus/Debtwire’s criteria of “large” filings isn’t always accruate. E.g. I don’t consider a $200mm liability filing as a big one, but it will likely be included in the league table ranking.

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(1) is an interesting point. Might be shop dependent, but the relationships to get the LMEs may be more heavily skewed to the RX folks though most of the “work” is finance. RX partners might be involved with these as a relationship matter, but not much RX substantive work there, so the work doesn’t meaningfully trickle down to RX associates (or, at least, not the work they want).

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Restructuring is an unusual industry because for many Rx groups one or two large cases is the difference between being slammed and having no work.

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I’m shocked this person was honest. People tend to pretend they’re busier than they are.

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Skill issue

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