The legal industry is witnessing innovative approaches from top law firms in North America, with Kirkland & Ellis leading in liability management. The firm successfully restructured Warner Bros Discovery's heavy debt, cutting $3 billion and setting a precedent for "fallen angel" companies. Sullivan & Cromwell handled the FTX bankruptcy, recovering roughly $15 billion for creditors. Paul Weiss guided Diamond Sports Group through a two-year restructuring, securing $495 million through litigation and $450 million in exit financing, alongside a $115 million streaming rights deal with Amazon. Morrison Foerster advised SoftBank on the ambitious Stargate AI project, involving a $100 billion initial investment. Hogan Lovells advised Strategic Sports Group on a $3 billion investment in the PGA Tour, creating PGA Tour Enterprises to prevent player defection to LIV Golf. Latham & Watkins advised Lineage on a $5.1 billion IPO, the biggest US IPO of 2024.
In Europe, firms are also showcasing significant achievements. Bracewell advised CrossBoundary Energy on securing up to $300 million in debt from Standard Bank of South Africa. Mayer Brown advised Standard Chartered bank on a $3 billion securitized joint venture with Apterra to finance clean energy projects, creating bespoke documentation to balance EU regulations and financial requirements. Paul Weiss advised Iris and its private equity owners on a £1.55 billion refinancing, navigating a competitive dual-track process. McDermott Will & Schulte advised a consortium of lenders on a $2 billion private credit refinancing for RLDatix, comprising a $1.6 billion term loan and additional facilities. Freshfields advised European private equity group CVC on its €2.3 billion IPO, and White & Case advised Ukraine on a $20.5 billion sovereign debt restructuring, which included GDP-linked returns for creditors. Cravath, Swaine & Moore acted for Morgan Stanley and Barclays in a contested €1.9 billion acquisition of Applus.
These case studies highlight how law firms are adapting to a changing landscape, including the politicization of business and technological advancements like AI, which is turbocharging litigation powers. For example, Willkie Farr & Gallagher saved over 500 hours using AI in a case that resulted in a $1.1 billion judgment against Iran. The demand for distressed debt legal advice has created an opening for new players, with firms like Davis Polk, Gibson Dunn, and Akin Gump increasingly representing hedge funds and asset managers. The legal sector is evolving, with firms focusing on holistic support across restructuring, refinancing, and M&A, driven by factors like covenant-lite debt and deep capital markets that allow companies to raise fresh capital without formal bankruptcy filings.
