Riding the Fulcrum Seesaw
September 26, 2007
Troubled businesses also may have turned to the distressed debt market instead of filing for bankruptcy protection due to recent changes to the Bankruptcy Code, which made bankruptcy a more complicated, expensive and uncertain alternative. As a result, when the next wave of Chapter 11 filings comes, hedge funds and other distressed debt investors will act to protect their unique interests and strategies, which will bring new dynamics to bankruptcy cases.
Firm-Client Efficiencies: One GC's Long View
August 30, 2007
'The No. 1 thing that helps us manage our outside counsel costs is longstanding relationships,' says James H. Miller III, senior vice president and general counsel for Georgia Power, the largest operating unit of Southern Co. 'Our principal law firm, Troutman Sanders, has been our law firm for a long time. They know as much or more about our company as some of our own executives do because they've been there longer. In a sense, they are our institutional memory.'
Controlling the Spiraling Costs of Online Legal Research
August 30, 2007
There was a time when electronic services were supposed to replace books and lower costs. They've done neither. Instead, fees continue to rise each year — well beyond the rate of inflation, say law firm librarians (licensing fees are typically covered by confidentiality agreements). Surveyed librarians expressed dissatisfaction on pricing issues especially with the big-two online providers, Reed Elsevier Plc's LexisNexis and Thomson Corp.'s Westlaw.
FCPA Compliance Training: Clarity Needed
August 30, 2007
Just as corruption saps the entire GDP of many countries, it can destroy the profitability of a firm's overseas (or, for that matter, overall) business. My 'Confronting Corrupt Practices' article in <i>A&FP</i>'s June 2007 edition surveyed some aspects of anticorruption training that law firms should consider.
The High Cost of FCPA Violations
August 30, 2007
Earlier this year, Baker Hughes Inc. ascended to the top of an exclusive and prominent list, but it is one on which few companies would want to be mentioned. On April 26, 2007, the Texas-based oil field products and services company announced that it was settling a federal probe alleging that it violated the Foreign Corrupt Practices Act ('FCPA'), and that it would pay fines and penalties in excess of $44 million ' the largest combined punishment under that law. It was truly one for the record books ' at least for the time being.
Does Giving Tax Advice Make You a 'Preparer'?
August 30, 2007
Signed by President Bush on May 25, The Small Business and Work Opportunity Tax Act of 2007 ('Small Business Act') includes new preparer penalty provisions that range up to 50% of the fee for preparing the tax return. Lawyers who give tax advice need to know that this legislation had a 'surprise' in it regarding whom the IRS considers a tax return preparer.
Evolution of a Law Firm CFO
August 30, 2007
Twenty-two years ago, I received a call from a headhunter looking to hire a Controller for Kirkpatrick, Lockhart, Johnson & Hutchison, a midsize and growing law firm with about 150 lawyers.
Equipment Finance in Canada: Changes to the Income Tax Act May Have an Impact
August 30, 2007
Canada's conservative minority government recently passed its 2007 Financial Budget (the 'Budget'), which will likely impact the equipment finance industry and particularly cross-border (U.S./Canada) transactions. Central to the Budget was the proposal to eliminate withholding tax on interest payments on loan transactions. As will be discussed below, the likely impact will be that traditional cross-border transactions will be restructured to: 1) provide for quicker repayment of the principal portion of the loan, and 2) provide a means for a greater number of less internationally focused commercial banks and finance companies to undertake cross-border transactions which, prior to the enactment of the new legislation, would have be seen as too complex. This second impact may cause a more competitive environment and further add liquidity to any already liquid market. It is not clear, however, that the proposed legislation will have a significant impact on larger transactions or the activities of internationally focused lenders. While there will likely be enhanced competition for smaller straightforward transactions than currently exists, the market for complex large transactions, while restructured, will have the same level of competition as currently exists.
