Bankruptcy Lawyers Become a Hot Commodity
When business is bad, business is good for bankruptcy lawyers. As more big businesses seek bankruptcy protection this year, more law firms are gearing up to handle the work.
In the first two months of this year, 18 big U.S. companies with liabilities over $12.4 billion filed for bankruptcy, double the number in the same period last year, the Washington Post reports. Their debt level is also higher—four times more than it was it was last year. Among the companies filing for bankruptcy were Sharper Image, Atari and Lillian Vernon.
Legal headhunter Jon Lindsey, managing partner of Major, Lindsey & Africa, told the Post that the change is good news for bankruptcy lawyers.
“A year or two ago, perhaps 5 percent of firms would say they’re thinking about adding bankruptcy attorneys,” Lindsey said. “Now it’s about 85 percent.”
Tony Clark, who chairs the reorganization practice of Skadden, Arps, Slate, Meagher & Flom, said some law firms in Delaware, where many big businesses are incorporated, have been preparing for the downturn for several years.
“Partners who specialize in reorganizations have been particularly hot in the last 18 months,” he told the newspaper. “Their practices were very slow, but people who do what I do saw the downcycle coming, and saw that bankruptcy and restructuring work will be picking up.”
