July 13, 2009
The massive corporate restructurings underway in the United States and Canada have created both business and challenges for law firms.
Canada’s firms have been retained to represent either the debtor companies or creditors involved in the overhauls of major North American businesses, such as those of General Motors, Chrysler, CanWest Global Communications, Nortel Networks, AbitibiBowater and Quebecor World.
Most firms are "going at full capacity," says Scott Bomhof. "The days of large insolvency departments waiting for work to come in aren’t here."
Companies undergoing restructuring tend to turn to the law firms with whom they regularly work. For example, Torys is representing long-time client Fairfax Financial Holdings, an investor in AbitibiBowater. But Torys pitched its services to Nokia Siemens Networks in order to be retained as Canadian counsel in the company’s acquisition of Nortel’s CDMA and LTE businesses.