Professionals (Long Consolidation)

A few weeks ago we noted a Bloomberg piece wherein restructuring professionals, e.g., FTI Consulting Inc.complained about a dearth of deals and a bevy of competition. One way to do away with some of the competition is to join it and that is precisely what FTI is doing with its announced acquisition of CDG Group. To recap, a prolific segment of FTI escaped to greener pastures at Berkeley Research Group. Now FTI has found (potential) replacements (and has upsized headcount further). We love musical chairs. Werk, werk, werk, werk, werk. 

Short Restructuring Professionals Who Suck at Marketing $FCN

We get the old adage that all publicity is good publicity. That said, we have to question the prudence of trying to promote your brand in a piece that says that "[r]estructuring advisors are short on work and long on time." Of acknowledging that you're overstaffed. Of stating that you're trying to do anything you can to keep bodies billing. Of noting that investment bankers and financial advisors are crossing over and creating even MORE competition for (the limited amount of) restructuring mandates. So, if we were on a management team and we found, say, FTI Consulting Inc. ($FCN), on the other side of the table pitching us, we'd be waving the above-linked article in the air like a crazed lunatic - all the while negotiating down hourly fees, success fees, tail length, and expense allocations into bargain basement territory. Then, after we get the bill and see body upon body stacked up on the engagement, we'd negotiate the bill down even more - knowing full well the shenanigans that are being pulled. After all, what do you do when you've got bodies on payroll? You "staff" them damn it, that's what. Because 900 people is a lot of mouths to feed. So, thanks for making all of that so bloody obvious, ya'll. Solid move. But PR!! And personal branding!!

What the Pros Say (2/5/17)

Jones Day LLP is back at it with a barrage of summaries.

  • Default Interest. Monika Weiner from Jones Day LLP provides an assessmentof recent case law aligning the Ninth Circuit with the majority view of 1123(d).
  • EFIH/MakewholeA review of the recent decision by Jones Day LLP's Bruce Bennett, Brad Erens, and Scott Greenberg. 
  • Lender LiabilityA discussion from...wait for it...Jones Day LLP.
  • MarblegateSkadden Arps Slate Meagher & Flom LLP arrives a little late to the party (Thoughts here by Jay Goffman, Mark McDermott, Sarah Pierce and Liz Downing) with Chadbourne as its date (more thoughts here by Marian Baldwin Fuerst and Christy Rivera). 
  • Retail. Amir Agam and Christa Hart of FTI Consulting cover the current state of retail.
  • Setoff. Charles Whitmann-Todd of, gulp, Jones Day LLP summarizes an important decision relating to the setoff of admin expenses against preferential payments.

What the Pros Say (Week of 11/20/16)

Things must have slowed down as a lot of professionals are putting pen to paper...

  • Dead Malls. FTI Consulting provides an analysis.  
  • Deathtraps. Proskauer LLP's Daniel Desatnik discusses "death traps" as a tool in restructurings.
  • Default Interest. Troutman Sanders LLP's Penelope Parmes, Matthew Brooks and Meghan Wells discuss a recent Ninth Circuit decision.
  • Distressed Oil & Gas. Haynes & Boone LLP's Charles Beckham and Opportune LLP's Ryan Bouley discuss distressed debt and oil and gas bankruptcy
  • Election. Oaktree Capital Management's Howard Marks follows up on his pre-election letter with these insights.
  • Jevic. Rebecca Hollander of Cole Schotz LLP discusses the upcoming Supreme Court hearing.
  • LLC Blockers. Nancy Peterman of Greenberg Traurig LLP discusses blocking rights in LLC operating agreements
  • Make-Whole Analysis. Bracewell's Evan Flashen, David Lawton and Mark Dendinger review the Third Circuit's reversing opinion. As do Schulte Roth & Zabel LLP's Adam Harris, Lawrence Gelber, Michael Cook, and Lucy Kweskin here.
  • Retail and Consumer Products. FTI Consulting released its 2016 Holiday Retail Report.
  • Shipping. Bracewell's Evan Flaschen and Mark Dendinger are prolific this week, also addressing the increasingly distressed shipping space. Seward & Kissel LLP's John Ashmead, Michael Timpone, and Robert Gayda also address the distressed shipping space - highly relevant in light of this week's crazy drybulk shipper movements (see Dryships).