WWL Thought Leaders Restructuring & Insolvency 2022 by lbresearch

THOUGHT LEADERS

Restructuring & Insolvency 2022

Interviews with the pinnacle of the profession

Read interviews with the world’s leading lawyers and experts.

Available now  @whoswholegal

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 Who’s Who Legal

THOUGHT LEADERS

Introduction

Contents

I am delighted to present WWL Thought Leaders: Restructuring & Insolvency 2022, which brings together the insight, expertise and wisdom of some of the world’s foremost restructuring and insolvency lawyers and experts in a single book. Through thousands of votes and nominations in the course of our research, the market has identified that the practitioners in the following pages are among the very best in the world in their field, without exception. Who’s Who Legal has been researching legal markets In total, only one in every seven individuals considsince 1996 and now covers

Lawyers

ered for inclusion in WWL: Restructuring &

35 practice areas and over Insolvency 2021 were invited to take part in WWL 150 countries. Entry into our guides is, of itself, no easy feat, Thought Leaders: Restructuring & Insolvency 2022 with fewer than half of those nominated obtaining a listing. The bar to be considered a thought leader for restructuring and insolvency is even higher: only those listed lawyers who obtained the highest number of nominations from peers, corporate counsel and other market sources in our most recent research cycle were considered. In total, only one in every seven individuals considered for inclusion in WWL: Restructuring & Insolvency 2021 were invited to take part in WWL Thought Leaders: Restructuring & Insolvency 2022. Through interviews with the practitioners themselves, WWL Thought Leaders: Restructuring & Insolvency aims to shine a light on what puts these practitioners at the apogee of the global restructuring and insolvency market. They are worthy of special mention owing not only to their expertise and experience advising on some of the world’s most significant and cutting-edge matters, but also their ability to innovate and inspire. Their experience and understanding of the legal world and their unique insights into the area will no doubt be illuminating and instructive to a wide spectrum of readers, whether clients, corporate counsel, established practitioners, those starting out in the law, or anyone with an interest in the practice of law at the very highest level. This edition of WWL Thought Leaders: Restructuring & Insolvency features Q&As with eight practitioners with hundreds of years of combined experience in the field between them. I would like to thank the participants who gave us their valuable time to answer our questions and make the book possible. It is rare to have so much restructuring and insolvency expertise concentrated in one place and we hope you will agree that their responses make fascinating reading.

Natasha Harrison

Ivo Waisberg

Directory

Rupert Wilson Head of research & analytics, Who’s Who Legal June 2022

Head of research & analytics Rupert Wilson

Content production manager Robert Harris

Business development manager Kiteria Yiu

Head of research: US Penelope Williams

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Natasha Harrison

Pallas Partners LLP London www.pallasllp.com

natasha.harrison@pallasllp.com Tel: +44 204 574 1001

Biography Natasha is the founder and managing partner of Pallas Partners, a London-based specialist law firm, focusing on international arbitration, investigations and litigation. Acting on behalf of funds, investment banks, corporations, and governments, Natasha’s practice focuses on highstakes international litigation and arbitration, with particular experience in contentious restructurings and insolvency. Natasha is recognised as a leading banking litigator by Legal 500 and Chambers UK; and by Super Lawyers, Who’s Who Legal and Lawdragon as a leading commercial litigator.

Restructuring & Insolvency

What attracted you to a career in law?

The intellectual rigour combined with business skills and commercial acumen – all designed to solve complex problems.

What do clients look for when selecting a restructuring and insolvency lawyer?

It is essential that they are at the top of their game in the restructuring and insolvency market. I think clients are particularly interested in and need lawyers who have a deep understanding of their business, but who are also very creative and solution driven because each restructuring is unique.

the plan. For any dissenting class to be subject to the latter “cross-class cramdown” the Court must be satisfied, inter alia, that it would be no worse off under the plan than it would be if the plan were not to proceed (i.e., under the “relevant alternative”). The Court is alive to any attempt to artificially create voting classes to take unfair advantage of this feature. The Court is scrutinising the valuations and relevant alternatives presented to it to justify the use either of these two new tools.

the use of the CVA, developed extensively in the case law, to realign a business’s portfolio of leases to commercial realties. This includes the modification of terms to turnover rents and other re-tailoring to ease the rent burden whilst fairly apportioning risk and return with the landlord, should revenues improve. This approval was stated last year by the Court’s rejection of the comprehensive challenges in New Look and Regis to this approach. The restructuring plan is another tool available here. It was used last year in Virgin Active to restructure lease, as well as financial debt, obligations with dissenting classes of landlords being “crammed down”.

What are some of the most effective ways that companies can now deleverage their balance sheet while providing for How do you establish a detailed a new streamlined governance Why did you decide to set up understanding of a client’s structure? your own firm? business to advise them The flexibility of the restructuring toolbox I saw a real gap in the market for a top-end effectively? has been strengthened by the addition of the litigation-only firm and a real opportunity I find the best way to get a detailed understanding of the business is to spend time with senior management – including the CFO – and their financial advisers. In this way, you gain in-depth knowledge on not just how the client operates, but the ability to craft a solution which delivers on the client’s objectives.

How has the UK’s new Restructuring Plan regime impacted the market? What does it do differently?

The restructuring plan has fundamentally changed the legal framework of restructuring tools available to distressed corporate debtors and their stakeholders. Two principal new features are different from an ordinary scheme of arrangement. Proponents of a restructuring plan may (a) with the Court’s approval, exclude an “out-of-the-money” class of creditors or shareholders whose rights are to be varied from voting on the plan and (b) have a plan approved by the Court even where one or more of the voting classes has not approved

restructuring plan to the existing techniques developed with schemes, CVAs and pre-pack administrations. The new moratorium procedure also provides a possibly useful alternative to administration to prevent creditor enforcement and give negotiations breathing space. This enhanced legal framework will form the backdrop to any consensual restructuring negotiations. Stakeholders will seek advice on which legal tools may be used to identify valuable leverage for their position in such discussions. Notwithstanding Brexit, with appropriate evidence being presented to it, the Court continues to support the use of the scheme and the restructuring plan to restructure non-UK companies’ debt and equity.

Have company voluntary agreements (CVAs) remained the tool of choice for clients to address rental portfolio liabilities? What other tools are available to clients?

to rethink how, as a new law firm starting from scratch, we can innovate, challenge and improve service delivery to our clients. Unlike most law firms, we aren’t shackled by systems and bureaucracy that have been in place for decades. We can begin afresh and create a new type of firm fit for the 21st century.

What advice would you give to someone looking to start their own firm?

Be prepared to not get much sleep! I think pre-planning is essential to ensure all aspects of the business are up-andrunning from day one, whether it’s financial, regulatory, or other systems. It takes enormous amounts of hard work and dedication, but if you have a clear vision and the passion to execute upon it, it is worth every sleepless night.

The commercial tenant’s position remains strong here. The Court has firmly approved

Peers and clients say: “Natasha is a powerhouse” “She has a very high capacity to solve problems and provide creative solutions” “She is one of the best lawyers I have worked with” whoswholegal.com/thought-leaders

Ivo Waisberg

Thomaz Bastos, Waisberg, Kurzweil Advogados São Paulo www.twk.com.br

ivo@twk.com.br Tel: +55 11 3552-5000

Biography Bachelor, master, doctor and full professor in law from PUC/SP; master in trade regulation from New York University. Professor in commercial law at PUC/SP. Lawyer, partner of Thomaz Bastos, Waisberg, Kurzweil Advogados. Besides 25 years’ experience in restructuring, corporate, project finance, banking and arbitration issues, Ivo Waisberg acts frequently as arbitrator in arbitration disputes and has authored numerous books and papers on legal issues.

Restructuring & Insolvency

What do you enjoy most about practising restructuring and insolvency law?

The challenge. To help a company and the whole environment around it is greatly rewarding. It is a complex task which requires multidisciplinary knowledge, strategical thinking, and emotional intelligence.

How do you establish a detailed understanding of a client’s business to advise them effectively?

First step is to understand the real problem. That demands understanding the business, the flow, as well as financial and economy issues. After that comes the legal issues, which involves pinpointing liabilities, financial assets, and legal and contractual rules of the specific case. Then we can think of the available legal tools and a strategy to establish a negotiation plan.

What further steps can the le g a l p rofe ss i o n t a ke to improve diverse talent hiring How can clients effectively and retention? address withdrawal of covid- I do not believe in any kind of magic to that related government support effect. Hiring well is knowing how to choose across different jurisdictions? and have a clear profile for recruitment, adapted well to e-commerce, and in some situations even thrived after all.

I guess the help offered by governments (in Brazil it was not so effective) as well as a certain good will shown by financial creditors helped several companies to survive. But now we’re experiencing the post-crisis period, which led many companies to restructure, since they suffered a lot and now there isn’t much help from the governments or flexibility from the financial system. From the judicial restructuring point of view, I assume an increase in the number of cases will be seen in 2022.

having as criteria: character and technical quality. Retention depends on recognising the merit of the development with good financial compensation.

What do you believe is the highlight of your career so far?

I consider the start of Thomaz Bastos, Waisberg, Kurzweil Advogados. Having created with my partners an office which is acknowledged as one of the best in our field, both in restructuring and litigation, and whose name brings good reputation and dignity is, undoubtedly, the greatest achievement in a career as a lawyer.

How can clients most effectively explore transformations to their business to strengthen What do you wish to achieve in Which sectors have received them, and what role do restruc- your practice that you haven’t the largest restructuring turing specialists have to play done so already? wake-up call from the global in this? Honestly, I have achieved more than I coronavirus pandemic, and how Every crisis presents an opportunity. Some expected. Looking 25 years back to the are they addressing the issues businesses take more advantage of the beginning of my career I would not expect created? situation, others not so much. In order to have come this far. I had the chance to At first, I think it was the retail market. It was largely affected by the general business lockdown at the beginning of the pandemic. Many of them had to be permanently closed. Those which had some cash on hand or were able to adapt to a smaller cash flow could resist the worst moments and got back to business. Others

to make over or take the opportunity, the operational turnaround specialist is of great help in providing a different angle on markets and processes. The legal expert will create leverage and a good strategy, and supply the tools necessary for implementation.

advise on the biggest cases in Brazil and some in the world in my area, to teach at an important university, to create a wellrespected specialised office and cooperate with the insolvency system reform by participating in the writing of Law 14.112/20. If I can keep this going like this, it will be a perfect achievement.

Peers and clients say: “One of the best lawyers with regards to advising debtors and/or plaintiffs in judicial reorganisation proceedings” “Ivo is very intelligent and incredibly well respected” “He is a standout name in the market” whoswholegal.com/thought-leaders

Thought Leaders in Restructuring & Insolvency 2022 | Lawyers Argentina

British Virgin Islands

Australia

Canada

Daniel Roque Vitolo, Vitolo Abogados

Scott Atkins, Norton Rose Fulbright Australia Philip Crutchfield, Dever's List Dominic Emmett, Gilbert + Tobin James Marshall, Ashurst Ross McClymont, Ashurst Maria O'Brien, Baker McKenzie Steven Palmer, Norton Rose Fulbright Australia Nick Poole, Clayton Utz Brendon Watkins, MinterEllison Leon Zwier, Arnold Bloch Leibler

Austria

Alexander Klauser, Brauneis Klauser Prändl Rechtsanwälte GmbH Ulla Reisch, Urbanek Lind Schmied Reisch Rechtsanwälte OG

Belgium

Bart De Moor, Strelia

Bermuda

Christian R Luthi, Conyers Paul Smith, Conyers

Brazil

Giuliano Colombo, Pinheiro Neto Advogados Thomas Benes Felsberg, Felsberg Advogados Eduardo Mattar, Padis Mattar Advogados Eduardo Secchi Munhoz, E Munhoz Advogados Fábio Rosas, Cescon Barrieu Flesch & Barreto Advogados Joel Luís Thomaz Bastos, Thomaz Bastos Waisberg Kurzweil Advogados Luiz Fernando Valente de Paiva, Pinheiro Neto Advogados Ivo Waisberg, Thomaz Bastos Waisberg Kurzweil Advogados • Q&A

Directory | Lawyers

Andrew Willins, Appleby

Alberta

Kelly Bourassa, Blake, Cassels & Graydon LLP Howard A Gorman QC, Norton Rose Fulbright Canada LLP Chris D Simard, Bennett Jones LLP

British Columbia

Mary Buttery QC, Cassels Brock & Blackwell LLP Kibben Jackson, Fasken Peter Rubin, Blake, Cassels & Graydon LLP John Sandrelli, Dentons Canada LLP

Ontario

Scott A Bomhof, Torys LLP Robert J Chadwick, Goodmans LLP Harvey Chaiton, Chaitons LLP Mario Forte, Goldman Sloan Nash & Haber LLP James D Gage, McCarthy Tétrault LLP Matthew P Gottlieb, Lax O’Sullivan Lisus Gottlieb LLP Pamela Huff, Blake, Cassels & Graydon LLP Elizabeth Pillon, Stikeman Elliott LLP Linc Rogers, Blake, Cassels & Graydon LLP Tracy Sandler, Osler Hoskin & Harcourt LLP Robin B Schwill, Davies Ward Phillips & Vineberg LLP Robert I Thornton, Thornton Grout Finnigan LLP Marc Wasserman, Osler Hoskin & Harcourt LLP Leanne M Williams, Thornton Grout Finnigan LLP

Quebec

Sandra Abitan, Osler Hoskin & Harcourt LLP Marc Duchesne, Borden Ladner Gervais LLP

Toronto

Jane Dietrich, Cassels Brock & Blackwell LLP

Cayman Islands

Sam Dawson, Carey Olsen James Eldridge, Maples Group Mark Goodman, Campbells Matthew Goucke, Walkers (Cayman) LLP Barnaby Gowrie, Walkers (Cayman) LLP Marc Kish, Ogier Neil Lupton, Walkers (Cayman) LLP Guy Manning, Campbells Caroline Moran, Maples Group Shelley White, Walkers (Cayman) LLP Colette Wilkins QC, Walkers (Cayman) LLP

Denmark

Henrik Steen Jensen, Holst, Law Firm

England

Kon M Asimacopoulos, Kirkland & Ellis International LLP Stephen Atherton QC, Twenty Essex Chambers Ken Baird, Freshfields Bruckhaus Deringer LLP Daniel Bayfield QC, South Square Bruce Bell, Latham & Watkins David Chivers QC, Erskine Chambers Adam Gallagher, Freshfields Bruckhaus Deringer LLP Jan Golaszewski, Carey Olsen Natasha Harrison, Pallas Partners LLP • Q&A Philip Hertz, Clifford Chance LLP Rebecca Jarvis, Linklaters LLP Partha Kar, Kirkland & Ellis International LLP Ben Larkin, Jones Day Mark Lawford, Weil Gotshal & Manges Jennifer Marshall, Allen & Overy LLP Yushan Ng, Milbank LLP John O'Driscoll, Walkers Mark Phillips QC, South Square Barry G Russell, Akin Gump LLP Tom Smith QC, South Square Yen Sum, Latham & Watkins

Richard Tett, Freshfields Bruckhaus Deringer LLP Felicity Toube QC, South Square Ian Wallace, White & Case LLP Iain White, Clifford Chance LLP Andrew Wilkinson, Weil Gotshal & Manges

Ian Mann, Harney Westwood & Riegels John M Marsden, Mayer Brown Neil McDonald, Kirkland & Ellis

Finland

William Day, Arthur Cox LLP Michael Murphy, McCann FitzGerald Julie Murphy O'Connor, Matheson

Andrew Chan, Allen & Gledhill LLP Blossom Hing, Drew & Napier LLC Sim Kwan Kiat, Rajah & Tann Singapore LLP Eng Beng Lee SC, Rajah & Tann Singapore LLP Sushil Nair, Drew & Napier LLC Manoj Pillay Sandrasegara, WongPartnership LLP Mei Yen Tan, Oon & Bazul Edward Tiong, Allen & Gledhill LLP

Italy

Spain

India

Bahram N Vakil, AZB & Partners

Ireland

Pekka Jaatinen, Castrén & Snellman Attorneys Ltd Nyyssönen Lassi, Fenno Attorneys at Law Jan Lilius, Hannes Snellman Attorneys Ltd Robert Peldán, Borenius Attorneys Ltd Jari Salminen, Eversheds Sutherland Mikko Tiilikka, Krogerus Hannu Ylönen, Krogerus

France

Daniel Anderson, Ropes & Gray LLP Robin Darton, Tanner De Witt Ian De Witt, Tanner De Witt Aisling Dwyer, Maples Group (Hong Kong) Look-Chan Ho, Des Voeux Chambers Howard K H Lam, Latham & Watkins LLP

Shinichiro Abe, Kasumigaseki International Law Office, International Arbitration Chambers

Dario U Oscós, Oscós Abogados

Joachim Exner, Dr Beck & Partner GbR Lucas Flöther, Flöther & Wissing Rechtsanwälte Michael C Frege, CMS Hasche Sigle Frank Grell, Latham & Watkins LLP Peter Hoegen, Allen & Overy LLP Thomas Hoffmann, Noerr PartGmbB Michael Jaffé, Jaffé Rechtsanwälte Frank Kebekus, Kebekus et Zimmermann Jan Markus Plathner, Brinkmann & Partner Stefan Sax, Clifford Chance Partnerschaft mbB Andreas Spahlinger, Gleiss Lutz Lars Westpfahl, Freshfields Bruckhaus Deringer PartG mbB Andreas Ziegenhagen, Dentons

Hong Kong

Japan

Mexico

Anja Droege Gagnier, BMH Avocats

Germany

Enrica Ghia, Studio Legale Ghia Lucio Ghia, Studio Legale Ghia

Netherlands

Michael Broeders, Freshfields Bruckhaus Deringer LLP Jelle Hofland, Clifford Chance LLP Sigrid Jansen, Allen & Overy LLP Nicolaes WA Tollenaar, RESOR NV Frédéric Verhoeven, Houthoff Robert J van Galen, NautaDutilh NV

New Zealand

Michael Arthur, Chapman Tripp Sebastian Bisley, Buddle Findlay Matthew Kersey, Russell McVeagh Mark O'Brien QC, Richmond Chambers David Perry, Buddle Findlay

Poland

Magdalena Dec, DLA Piper Giziński Kycia sp. k. Anna Maria Pukszto, Dentons

Portugal

Duarte Garin, Uría Menéndez - Proença de Carvalho

Singapore

Patrick Ang, Rajah & Tann Singapore LLP

whoswholegal.com/thought-leaders

Agustín Bou Maqueda, Fieldfisher JAUSAS Javier Castresana, Allen & Overy LLP Borja García-Alamán, Garrigues Adrián Thery Martí, Garrigues Fedra Valencia, Cuatrecasas Iñigo Villoria, Clifford Chance LLP Javier Yáñez Evangelista, Uría Menéndez

Sweden

Lars-Eric Gustafsson, Advokatfirman Schjødt Mathias Winge, Advokatfirman Fylgia

Switzerland Zurich

Marc Bernheim, STAIGER Attorneys at Law Ltd Daniel Hunkeler, Baur Hürlimann AG Franco Lorandi, HOLENSTEIN BRUSA Ltd | legal & tax Thomas Sprecher, Niederer Kraft Frey Ltd Brigitte Umbach-Spahn, Wenger Plattner Karl Wüthrich, Wenger Plattner

USA

Alabama

Richard P Carmody, Adams and Reese LLP

California

Kenneth N Klee, KTBS Marc A Levinson, Orrick Herrington & Sutcliffe LLP Berry D Spears, Keller & Benvenutti LLP Howard J Weg, Robins Kaplan LLP

Delaware

Derek Abbott, Morris Nichols Arsht & Tunnell LLP Laura Davis Jones, Pachulski Stang Ziehl & Jones LLP Craig Martin, DLA Piper LLP (US)

District of Columbia

Michael St Patrick Baxter, Covington & Burling LLP

Florida

Mark D Bloom, Baker McKenzie LLP Paul Steven Singerman, Berger Singerman LLP

Illinois

James H M Sprayregen, P.C., Kirkland & Ellis LLP

Massachusetts

Edwin E Smith, Morgan Lewis & Bockius LLP

New York

Corinne Ball, Jones Day Luke A Barefoot, Cleary Gottlieb Steen & Hamilton LLP

Directory | Lawyers

Paul M Basta, Paul Weiss Rifkind Wharton & Garrison LLP Donald S Bernstein, Davis Polk & Wardwell LLP Martin J Bienenstock, Proskauer Rose James L Bromley, Sullivan & Cromwell LLP Ken Coleman, Allen & Overy LLP Michael L Cook, Schulte Roth & Zabel LLP Kelley A Cornish, Paul Weiss Rifkind Wharton & Garrison LLP Dennis F Dunne, Milbank LLP Paul E Harner, Ballard Spahr LLP Marshall S Huebner, Davis Polk & Wardwell LLP Susheel Kirpalani, Quinn Emanuel Urquhart & Sullivan LLP Alan W Kornberg, Paul Weiss Rifkind Wharton & Garrison LLP M Natasha Labovitz, Debevoise & Plimpton LLP Richard Levin, Jenner & Block LLP Richard G Mason, Wachtell Lipton Rosen & Katz Thomas Moers Mayer, Kramer Levin Naftalis & Frankel LLP

Harold S Novikoff, Wachtell Lipton Rosen & Katz Elizabeth R McColm, Paul Weiss Rifkind Wharton & Garrison LLP Andrew N Rosenberg, Paul Weiss Rifkind Wharton & Garrison LLP Damian Schaible, Davis Polk & Wardwell LLP Ray Schrock, Weil Gotshal & Manges LLP Lisa M Schweitzer, Cleary Gottlieb Steen & Hamilton LLP Michael S Stamer, Akin Gump Strauss Hauer & Feld LLP Robert J Stark, Brown Rudnick LLP Rachel C Strickland, Willkie Farr & Gallagher LLP Albert Togut, Togut Segal & Segal LLP

Texas

Charles Beckham, Haynes and Boone LLP Alfredo R Pérez, Weil Gotshal & Manges LLP

THOUGHT LEADERS

Restructuring & Insolvency 2022

Advisers

Marcus Ayres

Kroll Advisory Ltd Sydney www.kroll.com

marcus.ayres@kroll.com Tel: +61 414 226 224

Biography Marcus has over 20 years of experience in corporate restructuring and distressed debt advisory assignments, including over 15 years cross-border restructuring experience covering North America, Asia and Europe. Marcus’ expertise includes the development and implementation of turnaround solutions for corporates in high-stakes situations, advising boards, government and creditors in distressed situations and developing and implementing restructuring solutions for hedge funds, private equity and banks with investments or lends into distressed entities

Restructuring & Insolvency | Advisers

What inspired you to pursue a career as a restructuring and insolvency expert?

When I was in my final year of university, we had a major insolvency proceeding start in Australia. It had considerable political, financial and community impact and gained significant media attention. Watching this process unfold was fascinating and it instantly drew me toward it as a profession.

What aspect of your practice do you enjoy most, and why?

I love the negotiation. The strategy and positioning required can be like a threedimensional chess board.

How does your experience in formal insolvency appointments enhance the skills and approach you bring to practice?

It’s always important to understand the second way out when attempting to conduct a restructuring. This helps to manage expectations and approach negotiations. Whilst formal insolvency is sometimes inevitable or unavoidable, knowing first-hand how value can be destroyed by formal processes is essential to navigating counterparties in a restructure.

What unique challenges do cross-border or multi-jurisdictional insolvencies pose for practitioners?

Being able to understand and manage different cultures has a significant influence on how effective and efficient a multi-jurisdictional workout can be. Understanding the stakeholder environment is naturally important, because it doesn’t always follow that the objectives and agendas of stakeholders in different counties, or even how they approach a negotiation, will be the same as your own.

Which sectors have received the largest restructuring wake-up call from the global coronavirus pandemic, and how are they addressing the issues created? Covid-19 has simply accelerated change in sectors that already appeared to be in focus. Locally we see the health and aged care sectors directly impacted by covid-19. Indirectly, supply chain issues and shipping costs are causing substantial problems, particularly in sectors such as construction and infrastructure.

What are some of the challenges posed by inter-creditor issues in restructuring, and how can they be effectively addressed in your experience?

Not irregularly inter-creditor documents have a drafting issue or don’t cater for the unique situation unfolding. Bringing expectations back into line with reality and getting pragmatism is always a challenge.

How can clients prepare themselves for changes in credit market dynamics, if debt becomes increasingly expensive and less available?

Whilst the cost of capital is increasing, there are many other external forces which are already taking hold which require actions and which will help manage higher debt costs. Operational improvement/costout programmes will need to be the next major focus for business.

How do you see your practice developing over the next few years?

I am focused on moving up the curve and deploying my skills earlier than is traditionally the case. I also expect to see movement into sectors which will have stranded assets given the changes taking place globally.

Peers and clients say: “He’s an intelligent and incisive practitioner” “A safe pair of hands for complex matters” whoswholegal.com/thought-leaders

Hugh Dickson

Grant Thornton

Cayman Islands www.grantthornton.ky hugh.dickson@uk.gt.com Tel: +1 345 769 7203

Biography Hugh heads Grant Thornton’s restructuring and recovery practice, covering 140 jurisdictions. With over 35 years of experience he is recognised as an innovative expert in the sector. Hugh’s experience includes roles for the IMF, World Bank, and EU, as well as eight national governments. He has travelled to over 110 countries, having lived as a resident in 10 of those. Whilst struck by the similarities in asset recovery between jurisdictions, he notes the critical importance of local knowledge.

Restructuring & Insolvency | Advisers

What inspired you to specialise in restructuring and insolvency proceedings?

A secondment to the corporate recovery division in my first year as a trainee accountant, primarily involved in trading receiverships. The responsibility and challenges in trying to operate and save a distressed business were night and day compared to the audit work I initially started with. A baptism of fire, but wonderful experience in everything from building management skills, managing stress and complex problems to personal satisfaction when you succeeded in rescuing a business and recovering value for creditors.

What’s been your most interesting case to date, and why?

The Saad case, where I was one of the joint liquidators on several of the entities involved. Quite apart from the sheer size – we hope to recover over $1 billion in assets across the various entities – it was a massively complex fraud case, with assets and cross-border asset recovery operations involving more than 10 jurisdictions and a wide spectrum of asset types, all in the face of extremely limited records given wholesale record destruction and the initial lack of cooperation and then collapse of the group’s centralised back-office function. If that wasn’t enough, a proprietary tracing claim coupled with a worldwide freezing order against the entirety of the group’s assets. It also spun off some of the most interesting litigation I have seen in my career. Contested claims over assets, damages actions against the fraudsters and those that abetted them, cross-border recognition applications and complex disputes over financial transactions. These included cases going to the supreme courts of four countries, with landmark decisions that have changed law or practice such as the Daiwa Quincecare finding, the limitations on the practical implementation of the first model law recognition application in Australia, and the decision limiting a liquidator’s ability

to request the provision of investigatory or other statutory powers available in another jurisdiction where they have recognition but no parallel proceeding.

How do you coordinate on cases when working alongside experts with other areas of expertise?

It’s no different to managing any complex operation where you need expertise in a subject you may not have a complete command of and need to draw on a wide variety of groups, often with highly specific skill sets. You make sure you operate as a team, with inclusion of a lead representative from each discipline involved in all core meetings and discussions, as their expertise may fundamentally affect the success or conduct of the wider plan. You need to ensure you understand core issues – in particular any requirements or limitations that might impact the work of individual specialists – but the primary goal is to have good communication within the team to ensure that the plan and the way the case is managed draws upon the strengths and contribution of each discipline whilst deconflicting or mitigating any potential conflicts. Ultimately you as the appointment holder make the final decisions, but you do so based on expert advice.

because of a depressed market for assets – especially in certain highly distressed sectors – and perhaps an acceleration of a trend that was seen pre covid-19 – a reluctance to engage in formal proceedings because of a concern around costs and time taken to resolve insolvencies. There has also been plenty of liquidity, as market demand for more traditional borrowing has reduced, leading to increased willingness by funders to engage with riskier funding. As long as there is a combination of new money willing to take risks and a reluctance by original lenders to enforce, insolvencies and restructuring can be staved off. Whether that situation can continue absent a major uplift in the global economy generally and distressed industries specifically is questionable, particularly in light of the additional strains being imposed by emerging inflation, energy prices, increased interest rates and the strains placed on supply chains. I think a major increase in some form of intervention into distressed business will be inevitable, but if I were a betting man, I think the focus will be on refinancing and corporate restructurings absent formal, court supervised proceedings. I think we will see more “rescue” scenarios with insolvency specialists employed – contractually rather than court appointed - as the gate keepers and managers of the new monies’ economic interests than formal insolvencies and restructurings.

What trends are you noticing in restructurings and asset recovery following the withdrawal of covid-related govern- What is the best piece of advice ment support across different you’ve ever received? jurisdictions? You are only as good as your team. Delegate I think most practitioners had been expecting a surge in formal insolvency cases, but we are not seeing that – at least, not yet. Initially it was easy to ascribe that to a combination of government subvention and emergency moratoria, but we haven’t seen a major increase in cases in those jurisdictions where these have been eased or removed. I think that is down to a combination of concern on creditors’ part that formal proceedings will not recover value

as much responsibility for workstreams as they can manage, but always remember that you can delegate authority but not responsibility. You get the recognition for the successes, but you get to take the blame for the things that don’t go so well too! If you trust your team and communicate well, you will collectively achieve so much more and much faster, and at the same time build your team members into the future leaders of the practice.

Peers and clients say: “Hugh is a highly rated expert in the Cayman Islands” “A leading insolvency and asset recovery expert” whoswholegal.com/thought-leaders

Chris Kennedy

Alvarez & Marsal

Cayman Islands www.alvarezandmarsal.com chris.kennedy@alvarezandmarsal.com Tel: +1 345 927 3137

Biography Chris Kennedy is a chartered accountant (Institute of Chartered Accountants, Ireland), and an associate of the Chartered Institute for Securities and Investment in the UK. He specialises in providing distressed solutions to the financial services sector, in corporate advisory, restructuring and insolvency, and also acts as a director in distressed situations. He has been appointed as an official, provisional and voluntary liquidator to numerous Cayman registered entities. Chris has significant experience in multijurisdictional matters, as well as in litigation, asset tracing, recovery and realisation.

Restructuring & Insolvency | Advisers

What do you enjoy most about How key has your experience of working as a restructuring and various court systems around insolvency specialist? the world been to your success I love the variety of work and constantly as an insolvency practitioner? facing new challenges in diverse markets and jurisdictions worldwide. While the objective is generally the same, the path to getting there is always different, which keeps the work exciting. This is particularly true being based in the Cayman Islands, which is home to groups and companies from around the world. As you move from case to case, you learn about the specifics of different industries and the intricacies of operating in countries from East to West in a distilled period.

What do you find most challenging about acting as a director for structured finance vehicles in distressed situations?

One key challenge is operating within the (generally) relatively restrictive terms of the governing documents, as regards the powers of directors. As a provisional or official liquidator, you can be afforded fairly broad powers by the court to take the steps needed to achieve your objective. With CLO/ CDO-type vehicles you tend to find that ISDA agreements do not bestow broad powers on directors, and do not anticipate directors taking an active role in the dayto-day management of the vehicle. That said, it is always an enjoyable challenge to find ways to work with noteholders and the governing documents to address issues and resolve the distress.

I think breadth of experience, from both jurisdictional and market perspectives, is vital in developing an insolvency practitioner’s skills. IPs are required to analyse information, quickly cut through red tape and discard irrelevant issues, often under pressure, just to get an understanding of the situation in which they find themselves. Being exposed to the different approaches to business practised in the USA, Europe and Asia, and the differing viewpoints of their court systems and jurisdictional sensitivities and considerations, has helped me develop an appreciation for how business works and, more importantly, how people work.

among specialists on the ground, with a proper understanding of the nuances of local operational factors, will be critical.

What were the challenges of setting up a new office in the Cayman Islands?

We were lucky that we had great support from A&M and in particular our operations team; but we were still involved in everything, from the office design and refit through to the local licensing application. The most important challenge for us was building the team. The goal was to bring in the best talent with Cayman Islands experience, while recognising that a cultural and personal fit was of equal importance – striking that balance was probably the toughest challenge. We’ve been fortunate to get it right so far and, of our achievements to date, I’m proudest of the individuals who form our team at Alvarez & Marsal Cayman Islands.

Do you think globalisation will play a part in resolving issues created for businesses by covid-19? You have enjoyed a very disYes. The cross-border sprawl of business tinguished career so far. What has driven the globalisation of restruc- would you like to achieve that turing processes and the need for greater you have not yet accomplished? cooperation among restructuring practitioners internationally. It is no secret that some countries are moving away from globalisation towards a more inward focus; however, large-scale debt/corporate restructurings create issues requiring access to courts in multiple jurisdictions and “boots on the ground” to manage and supervise operations in different countries. These are global issues that will undoubtedly require global solutions – cooperation

I’ve been very lucky to have had some great mentors and some excellent colleagues so far in my career. I’ve had opportunities at a young age to build teams, and now with A&M to get in at the start and establish an office in the Cayman Islands. I am incredibly fortunate and grateful to have had these opportunities. My focus now is to contribute to the success of A&M by building and consolidating our position in the Cayman Islands and, more broadly, offshore.

Peers and clients say: “Chris is highly responsive and technically excellent” “Chris is cool under pressure and very commercial” whoswholegal.com/thought-leaders

Alex Lawson

Alvarez & Marsal Holdings, LLC George Town, Cayman Islands www.alvarezandmarsal.com

alawson@alvarezandmarsal.com Tel: +1 345 916 4500

Biography Alex is a managing director and head of the Cayman Islands office of Alvarez & Marsal, with over 19 years of experience in complex restructurings and insolvencies. Alex has a proven track record of leading teams to deliver better-than-expected returns to stakeholders in record time. As demonstrated in the restructuring of Luckin Coffee Inc (acting as provisional liquidator) and the wind down of Marble Ridge Capital, Alex is an active leader with a deep commercial mindset and is a proven dealmaker.

Restructuring & Insolvency | Advisers

What inspired you to become a restructuring and insolvency expert? The inspiration and focus to become an expert in the field was born out of genuine passion for the work. Within a few years of starting out in the industry in the early 2000s, I was hooked on the challenge and variety of work and experiences available. It was the realisation that the advisory team on a matter was able to significantly influence an outcome and that the next or final chapters of an entity’s story were up to you to write; that sparked my thirst for continual development.

How do you effectively establish a detailed understanding of a client’s business in your capacity as expert?

The single most important aspect is to identify the real value proposition of a particular business and the levers to be pulled in order to restore performance or to promote a future transaction. One effective way is to speak with many levels of staff throughout the organisation and deep dive in those conversations to find the ‘truth’. By then cross-referencing the insight gathered across the organisation, you can quickly work out where the value drivers are and where the problems lie.

What unique challenges do cross-border or multi-jurisdictional insolvencies pose for practitioners?

The key challenge to success is developing a coordinated exit strategy that fully meets

the core objective on a particular matter and which is effective in its enforcement and implementation across all the relevant jurisdictions. You cannot make assumptions about what will or won’t work in different jurisdictions. Only by having the right experience and taking the time to fully understand the key influencing factors (laws, culture, governments and people) can you then develop a strategy that will work.

How do you coordinate on cases when working alongside experts with other areas of expertise?

Collaboration is key. I don’t, and never will, have the answers to everything - other experts are a key resource to help in our strategy formulation and execution plan. Taking on board expert advice (to the right questions to begin with) is only the first step. The most difficult aspect is knowing how to effectively apply such advice to the problem in front of you; successfully doing that is where the value lies.

How do you think firms could better attr act and retain diverse talent?

In our industry, people are everything. We don’t have a prescribed playbook, we don’t sell off-the-shelf solutions or download some magical software; all we have is people working together with other people to solve a problem or deliver a desired outcome. So, only by creating a true team environment where all levels of your staff, from all backgrounds, feel they are able to contribute whilst also constantly learning

from those around them, can you create the type of workplace that produces real purpose and engagement, which in turn leads to attraction and retention of quality and diverse talent.

As managing director, what are your main priorities for A&M’s development over 2022-2023?

It is all about differentiating through results on engagements. Demonstrating a track record of oversized and unexpected returns to stakeholders both in value and speed is what sets us apart. The question clients should ask is not, ‘What have you been appointed to recently?’ but ‘What was the outcome and what difference did you make?’. So, the goal is the same as it always has been: to roll up our sleeves with our clients, deliver results and make the process as enjoyable as possible for all involved.

What advice would you give younger practitioners hoping to one day be in your position? Invest in your continual education and equally in external relationships that can grow with you as your career progresses. Most importantly, go the extra mile on delivering quality work and have fun doing it.

Peers and clients say: “He has built a fearsome, go-to reputation in the Cayman Islands restructuring space” “Alex is commercially minded and gets straight to the point” “He is committed to delivering the best results possible” whoswholegal.com/thought-leaders

Julie Nettleton

Grant Thornton UK LLP London www.grantthornton.co.uk

julie.g.nettleton@uk.gt.com Tel: +44 20 7728 2412

Biography Julie Nettleton is a director in Grant Thornton UK’s insolvency and asset recovery practice. Julie is a chartered accountant and a fellow of INSOL International. Julie has over 25 years of experience in insolvency and restructuring and extensive experience in the management and execution of large and complex insolvency assignments. These assignments frequently involve multiple appointments across a variety of offshore and onshore jurisdictions, large and complex debt structures, significant litigation, and allegations of fraud.

Restructuring & Insolvency | Advisers

What inspired you to pursue a career in restructuring and insolvency?

I started my professional life as a trainee in a tax practice, and very quickly realised that that path was not for me. I was intrigued by the stories that a family member who was a trainee in an insolvency team told me about much more interesting and varied work, so I decided to switch tracks and have never looked back. The challenges and opportunities which are available even to junior members of our profession were, and remain, a huge draw for people who are looking for a different perspective on a career in accounting.

How has the market changed since you first started practising?

The insolvency and restructuring market is an entirely different place from when I began my career. The level of sophistication of practitioners, advisers and creditors has increased exponentially and the industry attracts the brightest minds, not just the “cowboys” of the past.

How do you effectively coordinate on cases when working alongside experts with other areas of expertise? Communication, coordination and respect are the fundamentals for working in a

multidisciplinary team. It’s necessary for there to be a leader for the purposes of driving the team towards the common goal of providing the best product or solution for stakeholders and holding people accountable for their part in doing so. Roles and expectations need to be clearly set out from the beginning, and egos must be left at the door, which can sometimes be a tough pill to swallow for experts at the top of their game.

What unique challenges do cross-border or multi-jurisdictional insolvencies pose for practitioners? What are some of the key processes you undertake when managing such a case? Cross-border cases are often huge exercises in project management and identifying the right team for that job at an early stage is crucial to the effective running of the assignment. I always like to assign a technically and commercially switched-on person as the “car-crash monitor”, whose role it is to watch out for the tensions which often arise between jurisdictions and can derail a global strategy. Those tensions can be thrown up by inconsistences in the law between jurisdictions, as well as by competing timetables and priorities and navigating around them is vital for a successful outcome.

What attributes make for an effective restructuring and insolvency specialist in today’s climate?

To succeed in today’s climate, it is not nearly enough to be technically astute. Practitioners must match the commercial sophistication of stakeholders and be responsive to the global forces driving financial markets. We also need to be people managers of the highest calibre, to ensure that we are getting the best from our internal and external teams. Coordinating a global multidisciplinary team is an art not a science and requires genuine investment in the people around you.

What is the best piece of advice you’ve ever received? I was once advised that the smartest way to build a strong team was to recruit people who are different to and ideally smarter than me! That made me doubt my own worth to the team for just a moment, but on reflection, surrounding yourself with bright people with different perspectives is absolutely the right approach.

Peers and clients say: “She has great experience of complex recovery claims” “I was very impressed with her handling of large corporate restructuring proceedings” whoswholegal.com/thought-leaders

Tiffany Wong

Alvarez & Marsal Holdings, LLC Hong Kong www.alvarezandmarsal.com

twong@alvarezandmarsal.com Tel: +852 3102 2663

Biography Tiffany has extensive knowledge and experience in corporate insolvency, restructuring and dispute resolution in Hong Kong and the PRC. She combines international practices with local characteristics of China, and provides professional advice and resolutions to clients for challenging cross-border projects. She was one of the Joint Provisional Liquidators to facilitate the successful restructuring of Luckin Coffee Inc, which emerged out of a massive crisis as a result of accounting fraud, and she also leads some of the most significant insolvency cases in Asia in the present.

Restructuring & Insolvency | Advisers

How can clients prepare themselves for changes in credit market dynamics, if debt becomes increasingly expensive and less available?

Cash is king and we cannot emphasise the importance of cash management enough particularly in the times of credit crunch. There are always funding options in the market and investors would price in inherent risks of internal control weaknesses and the competence level of management. Any deficiencies in the system will affect the appetite of investors and are reflected in terms of offers.

significantly and especially when there is a large number of parties involved. The restructuring of Luckin Coffee Inc is a great example to demonstrate how effective a court process can be when there is a significant level of distrust in the incumbent board and management team, which renders any informal consensual restructuring effort futile.

What has been the highlight of your career so far?

Nothing beats being able to exceed creditors’ expectations by paying them back what they had lost, when they thought they would never get anything meaningful back.

What are some of the challenges posed by inter-creditor What are your ambitions for issues in restructuring, and your practice in the next five how can they be effectively years? addressed in your experience? We have a very talented and diverse team. Differences in internal procedures for obtaining approvals. Experience in dealing with distress situations and risk appetite of creditors are the root causes of these differences. These challenges can be effectively managed by way of engaging an independent financial adviser and lawyer who is experienced in dealing with a distressed situation so that they are able to perform the communication and analytical work in a more effective and credible manner in order to drive the restructuring towards the desired outcome.

What are some of the most effective ways that companies can now deleverage their balance sheet while providing for a new streamlined governance structure?

A court restructuring process may well be the most effective means in my mind when vested interests of key stakeholders differ

Our practice was a start-up when I joined two-and-a-half years ago and we were lucky to have been able to recruit some of the very best from the market and demonstrate our ability to deliver desirable outcomes to clients in an efficient manner, so I see our practice being recognised as the first and preferred choice when it comes to restructuring and insolvency mandates.

What advice would you give to younger practitioners hoping to one day be in your position? Younger practitioners need to see beyond the negativity that is associated with business failures, distress and dispute. Think about the differences that we could make to the community and the economy when we are able to help save struggling businesses or at least mitigate the severity of the problems if we are able to give clients and other stakeholders proper advice. Perseverance is key and will pay off.

Peers and clients say: “I highly recommend Tiffany’s work” “A fantastic practitioner”

whoswholegal.com/thought-leaders

Thought Leaders in Restructuring & Insolvency 2022 | Advisers Australia

Marcus Ayres, Kroll • Q&A Joseph Hansell, FTI Consulting Chris Hill, FTI Consulting Jason Preston, McGrathNicol

Roy Bailey, Ernst & Young Ltd. Paul Pretlove, Kalo

Simon Conway, PricewaterhouseCoopers Hugh Dickson, Grant Thornton • Q&A Specialist Services Eleanor Fisher, EY Cayman Ltd David Griffin, FTI Consulting Chris Kennedy, Alvarez & Marsal • Q&A Alex Lawson, Alvarez & Marsal • Q&A Andrew Morrison, FTI Consulting Michael Pearson, FFP Limited Mike Penner, Deloitte & Touche Jess Shakespeare, PricewaterhouseCoopers

Canada

England

Bermuda

John McKenna, Finance & Risk Services Ltd Mike Morrison, KPMG

British Virgin Islands

Alberta

Deryck Helkaa, FTI Consulting

British Columbia

Todd Martin, Alvarez & Marsal Mike Vermette, PwC LLP

Ontario

Randy Benson, RC Benson Consulting Inc. Paul Bishop, FTI Consulting Al Hutchens, Alvarez & Marsal Bobby Kofman, KSV Advisory Inc. Murray McDonald, EY Doug McIntosh, Alvarez & Marsal Alex Morrison, EY Gregory N Prince, PwC LLP Greg Watson, FTI Consulting

Cayman Islands

Directory | Advisers

Simon Appell, AlixPartners UK LLP Alastair Beveridge, AlixPartners UK LLP Alan Bloom, EY Geoff Carton-Kelly, FRP Advisory Trading Limited Malcolm Cohen, BDO LLP Shane Crooks, BDO LLP Stuart Deacon, Alvarez & Marsal Jo Hewitt, Alvarez & Marsal Bruce MacKay, RSM UK Manuel Martinez-Fidalgo, Houlihan Lokey EMEA LLP David Morris, FTI Consulting Julie Nettleton, Grant Thornton UK LLP • Q&A Matthew Prest, Moelis & Company Diederick van der Plas, FTI Consulting

Germany

Derik Evertz, PwC Legal

Guernsey, Channel Islands Andrea Harris, Grant Thornton Jamie Toynton, Grant Thornton

Hong Kong

Chris Brookes, FTI Consulting Daniel Chow, FTI Consulting Vincent Fok, FTI Consulting Tiffany Wong, Alvarez & Marsal • Q&A

Singapore

Angela Ee, Ernst & Young Luke Furler, Quantuma (Singapore) Pte Limited Thien Phong Goh, GTP Advisory PAC Paresh Jotangia, Grant Thornton Rajagopalan Seshadri, Grant Thornton Wei Cheong Tan, Deloitte Bob Yap, KPMG Holly Yuen, Madison Pacific

Spain

Sergio Vélez, FTI Consulting

USA

California

Amir Agam, FTI Consulting

New York

Lisa J Donahue, AlixPartners

Global Restructuring Review (GRR) is the trusted source of worldwide news and analysis for restructuring and insolvency practitioners. It keeps you up to speed with the global issues and trends that matter, giving you the detail, and depth you need to operate successfully. Know more Keep informed with the latest news, research and opinion, so you can stay connected, advise with confidence and compete effectively. Find the edge Connect and collaborate with your peer group, clients and colleagues. Get the full cross-border view from leaders in the field, to help you identify opportunities and research your position. Lead the market Understand the trends and harness the data sets, tools and insight you need to guide strategy, streamline decision-making, and keep your practice in front.

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ISSN 2516-127X

WWL Thought Leaders Restructuring & Insolvency 2022

Articles inside

Julie Nettleton

Alex Lawson

Tiffany Wong

Ivo Waisberg

Hugh Dickson

Chris Kennedy

Marcus Ayres

Natasha Harrison