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Restructuring
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<blockquote data-quote="Dheepa" data-source="post: 53156" data-attributes="member: 1572"><p>Hi Lauren, </p><p></p><p>Interesting question. </p><p></p><p>So put simply, restructuring work involves re-negotiating the terms of an existing loan/credit facility with debtors/creditors (depending on who the law firm is representing - although in Kirkland's case they usually represent borrowers/debtors) Sometimes this can be as simple as negotiating lower interest rates or longer repayment terms and other times it can be far more complex i.e. involving debt to equity swaps, registering security over a larger range of assets, etc. Insolvency or the threat of insolvency makes matters more complex because especially in the US, where things like CVAs and out of court settlements aren't popular at all (see <a href="https://www.theguardian.com/business/2019/sep/02/mike-ashley-wants-to-eliminate-debenhams-as-a-competitor-court-hears" target="_blank">this </a>article), firms would almost always need to represent clients in court. The US Chapter 11 bankruptcy proceedings are actually pretty popular with a lot of companies because of the greater return creditors are likely to see, so that is one aspect in which I'd assume Kirkland's team of US qualified lawyers help put their restructuring practice ahead. Other than that, strong links to financial institutions just means a better understanding of what the market terms are on loan provisions and of course greater exposure to potential clients. </p><p></p><p>In terms of strong links to funds (I assume you mean PE funds and hedge funds), I don't think any firm needs strong links to help with restructuring work but instead the funds are a completely different client base that need restructuring work in a different capacity. US based private equity firms are particularly active in distressed debt (more so than UK ones are). They buy particularly bad debt of a company with the aim of converting that debt into an equity stake through the aforementioned debt to equity swap method, which is where the restructuring lawyers come into play. This form of investment for PE companies has been particularly popular because of all the insolvencies and distressed companies arising out of COVID. </p><p></p><p>I've kept this rather brief but I hope that helps out your understanding of restructuring work and Kirkland's advantage in the area.</p></blockquote><p></p>
[QUOTE="Dheepa, post: 53156, member: 1572"] Hi Lauren, Interesting question. So put simply, restructuring work involves re-negotiating the terms of an existing loan/credit facility with debtors/creditors (depending on who the law firm is representing - although in Kirkland's case they usually represent borrowers/debtors) Sometimes this can be as simple as negotiating lower interest rates or longer repayment terms and other times it can be far more complex i.e. involving debt to equity swaps, registering security over a larger range of assets, etc. Insolvency or the threat of insolvency makes matters more complex because especially in the US, where things like CVAs and out of court settlements aren't popular at all (see [URL='https://www.theguardian.com/business/2019/sep/02/mike-ashley-wants-to-eliminate-debenhams-as-a-competitor-court-hears']this [/URL]article), firms would almost always need to represent clients in court. The US Chapter 11 bankruptcy proceedings are actually pretty popular with a lot of companies because of the greater return creditors are likely to see, so that is one aspect in which I'd assume Kirkland's team of US qualified lawyers help put their restructuring practice ahead. Other than that, strong links to financial institutions just means a better understanding of what the market terms are on loan provisions and of course greater exposure to potential clients. In terms of strong links to funds (I assume you mean PE funds and hedge funds), I don't think any firm needs strong links to help with restructuring work but instead the funds are a completely different client base that need restructuring work in a different capacity. US based private equity firms are particularly active in distressed debt (more so than UK ones are). They buy particularly bad debt of a company with the aim of converting that debt into an equity stake through the aforementioned debt to equity swap method, which is where the restructuring lawyers come into play. This form of investment for PE companies has been particularly popular because of all the insolvencies and distressed companies arising out of COVID. I've kept this rather brief but I hope that helps out your understanding of restructuring work and Kirkland's advantage in the area. [/QUOTE]
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