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Bankruptcy Practices Using Slowdown to Restructure, Sniff Out Distressed Sectors
While most of the Am Law 100 reveled in a year of M&A and real estate-driven profits, spare a thought for the bankruptcy lawyers, who didn't have such a great 2021.
Commercial Chapter 11 bankruptcy filings fell by nearly 50% last year compared to 2020, according to legal data firm Epiq Global. Relatedly, bankruptcy practices saw their demand shrink by 7.8% versus 2020, a recent Thomson Reuters report stated.
In interviews, bankruptcy practice leaders insisted that out-of-court restructurings and other insolvency matters have filled gaps left by the Chapter 11 lull. But they also admittedly have some time on their hands, which they're using to sniff out insolvency in distressed sectors and market their services to existing and potential clients.
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