An Orderly CFO Succession
September 29, 2004
When I announced my intention to retire from a 25-plus year career as CFO at an AmLaw 200 law firm, the firm began a process to search for and select a replacement. Because I had been with the firm for such a long time, we took the opportunity to start more or less from square one in determining what the firm wanted in a CFO. I had evolved my position from that of Controller as the firm grew, and its management and its needs changed.
Law Firm Political Contributions: Why And How
September 29, 2004
A&FP got lucky this summer when I sought an expert to advise our readers on law firm political contributions. Not only did Kurt Salisbury help me recruit his Arent Fox colleague Craig Engle, but he agreed to perform the interview on my behalf. Our readers thus gain not only the perspective of a major firm's PAC Director but also the perspective of the same firm's CFO.
How Much Can Bankruptcy Lawyers' Fees Be Raised in the Final Application?
September 29, 2004
U.S. Bankruptcy Judge Dennis Montali approved nearly all of the final fee requests for law firms and other consultants working on the massive Pacific Gas & Electric Co. bankruptcy. <br>Montali's OK puts the final tally for more than 3 years' worth of work at about $450 million to $475 million, according to an accounting by the Office of the U.S. Trustee. Of the total, about $100 million goes to law firms representing the utility in different capacities. <br>That makes the case one of the most expensive bankruptcy matters ' if not the most expensive ' in the history of the Northern District of California.
Hefty Fees: Lawyers Get a Taste
September 29, 2004
The California State Bar is throwing open the door to out-of-state lawyers, but strict conditions and high costs have some worried about tripping over the welcome mat.
Are Lawyers' Invoices Privileged Communications?
September 29, 2004
Lawyers' billing invoices are not privileged attorney-client communications and must be produced when subpoenaed in a civil contempt hearing, the Pennsylvania Superior Court ruled in late September in a dispute over a guardian ad litem's fee request.
Can the Sequel Make More Money Than the Original?
September 28, 2004
Talk about a balance of power. Debtors want to sell assets for maximum value. Bidders want to buy cheaply and with finality. While debtors want flexible auctions, if the rules are open-ended, bidders will stay home. So what happens to bidder confidence when, after the auction concludes, but before the sale is approved, a late bidder offers more money? Bankruptcy courts must weigh the potential benefits to the estate against the reasonable expectations of the auction participants and the impact of accepting a late bid on the integrity of bankruptcy auctions. Recently, the Seventh Circuit examined this tension in <i>Corporate Assets, Inc. v. Paloian</i>, 368 F.3d 761 (7th Cir. 2004) (<i>Paloian</i>) [as analysed in last month's issue].
Turning Off The Lights: Safely Shutting Down An Insolvent Subsidiary
September 17, 2004
It is not uncommon for a holding company (or private equity fund) to have at least one operating subsidiary (or portfolio company) that is underperforming relative to the other companies it owns. Sometimes problems can be fixed and fortunes reversed. Other times, however, the subsidiary/portfolio company continues to struggle and may eventually become truly distressed and even insolvent. At some point, the strategic decision will be made to discontinue the operating subsidiary's business. When this occurs, strategy must be quickly developed and executed to minimize any ongoing losses and to maximize the recovery for the subsidiary's stakeholders. <br>Any business strategy should be approached with an informed understanding of the overall legal landscape, as well as the specific risks and potential rewards associated with each of the parent's available options. Likewise, the parent must understand its position in the decision-making process relative to those of the insolvent subsidiary's other obligees ' its creditors.
Expanding Law Firm Operations Globally
September 02, 2004
The June edition introduced numerous accounting-related issues that firms confront when they use foreign currencies. This new article raises additional accounting-related challenges of international compensation and taxation, while also highlighting the broader planning issues associated with a law firm's decision to expand its operations globally.
Compensation: Is <i>Not</i> Tracking Contributions a Good Idea?
September 02, 2004
Joel Rose authored last month's <i>A&FP</i> article on how to balance compensation for law firm partners whose strengths lay in origination, production and management. So <i>A&FP</i> sought his reaction to the following thought-provoking quote from Peter C. Lando and Matthew B. Lowrie.
