Legal News

Weil Gotshal?s Fingerprints All Over the Detroit Bankruptcy Situation

By Nathan Koppel

The Law Blog feels nary an ounce of schadenfreude about the woeful state of the American auto industry.

Still, we would be remiss in failing to note that Detroit's troubles are a salve — a big warm bubble bath filled with Epsom salts — for certain law firms.

For starters, click here for a WSJ piece on the latest maneuvers in the unfolding drama.

Four law firms are handling the lion's share of work on the G.M. and Chrysler restructurings.

Harvey Miller at Weil Gotshal, a/k/a Mr. Bankruptcy, is advising G.M. Also advising the company is Martin Bienenstock and a team of restructuring and real estate lawyers at Dewey LeBoeuf. The Dewey team has been cranking away for several months.

Over at Cadwalader, is heading a team that, since January, has been advising the government's auto task force.

Chrysler is being advised by Corinne Ball (pictured) at Jones Day.

Astute readers may spot a common thread linking these bankruptcy barristers: Weil Gotshal. Bienenstock left Mother Weil in 2007, as noted in this LB post.

Rapisardi also hails from Weil, which he left in 2007. And Ball is an alumna of Weil. It's no wonder Weil's bankruptcy department has long been a hunting ground for professional recruiters.

If G.M. and Chrysler do land in bankruptcy count, rest assured that a lot more firms — and perhaps Weil alums — will line up to get their piece of the pie.

Meanwhile, the folks over at BankruptcyData.com today report that 64 public companies have filed for bankruptcy so far this year; that is more than double the number of companies that filed through the end of March last year and is four times the filing rate as of March 31, 2007. Yowza.

Full post as published by Law Blog - WSJ.com on March 31, 2009 (boomark / email).