Two Of Biglaw's Best Contribute To Massive Spike In Commercial Bankruptcy Filings
Commercial Chapter 11 filings were up 118% over February 2023, thanks, in part, to these Biglaw firms.
While many were busy celebrating their loved ones in February, attorneys at two of the country’s most prestigious law firms were busy with… bankruptcy filings.
According to a new report from Epiq Bankruptcy and the American Bankruptcy Institute, commercial Chapter 11 bankruptcy filings increased by 118% in February 2024 over February 2023, and by 77% over January 2024’s filings. Which law firms were behind the colossal increase?
That would be Weil Gotshal and Kirkland & Ellis, which started and ended the month with major cases. The American Lawyer has the details:
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At the beginning of the month, Miami-based primary care provider Cano Health filed for Chapter 11 bankruptcy protection with $1.2 billion in assets and roughly $1.5 billion in liabilities.
Represented by Weil, Cano went public in a 2020 SPAC deal valued at $4.4 billion. Weil advised Cano on corporate matters and shareholder activist issues before the company hit financial turmoil, court records indicate, at which point Weil began advising Cano on restructuring matters. The firm received around $9 million from Cano during the 90 days before the filing and maintained a credit balance of $4.2 million at the time of filing. …
At the end of the month, Kirkland filed for Chapter 11 bankruptcy protection on behalf of 241 companies under the jointly administered bankruptcy of Thrasio Holdings, a third-party seller on Amazon. Thrasio filed with between $1 billion and $10 billion in assets and $500 million to $1 billion in liabilities.
Together, the firms took on about 300 of last month’s Chapter 11 filings in jointly administered bankruptcies. Congratulations to Weil and Kirkland on all of their success.
Kirkland, Weil Contribute to 118% Uptick in Commercial Chapter 11 Filings [American Lawyer]
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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter and Threads or connect with her on LinkedIn.
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