Study Shows Fragmented Competitive Market for Corporate Bankruptcy Counsel
STUDY SHOWS FRAGMENTED, COMPETITIVE MARKET FOR CORPORATE BANKRUPTCY COUNSEL
February 2, 2007, Alexandria, Va. — A recent study of 275 large chapter 11 cases revealed that, contrary to the impression given a handful of newsworthy mega cases, the market for corporate bankruptcy counsel is highly competitive and includes professionals from a number of firms that vary in size. The results are summarized in an article by Prof. Stephen J. Lubben of Seton Hall University School of Law, and published in the Winter 2006 issue of theAmerican Bankruptcy Institute Law Review.
Lubben used Prof. Lynn
LoPucki’s Bankruptcy Research Database to find large corporations
with assets greater than $100 million that filed for bankruptcy between
2001 and the first half of 2005. The average debtor in the sample had
assets of more than $2.5 billion and more than 6,500 employees prior to
the filing. Lubben’s study uncovered a
highly fragmented market of more than 100 unique law firms represented
as counsel in the sample, ranging in size from 12 attorneys to over
1,000. No firm had more than 10.4 percent of
the market as debtor counsel, although six firms (Weil, Gotshal &
Magnes; Skadden Arps, et
The article complements
Lubben’s forthcoming study on professional fee practices in
chapter 11 cases, to be released this fall. Lubben’s two-year study is funded by the ABI
Endowment. Some scholars have argued that
the selection of certain debtors’ counsel steers cases to
The ABI Law Review, published twice a year by Thomson West, is among the most respected scholarly publications in the bankruptcy community. Distributed to all ABI members as a benefit of membership, the ABI Law Review has the largest circulation of any bankruptcy law review.
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.