What Is Restructuring Law?
BigLaw Bear · 2 min read
Restructuring is one of the most intellectually challenging and countercyclical practice areas in BigLaw. When the economy is bad, restructuring lawyers are busiest.
What Restructuring Lawyers Do
Restructuring lawyers help financially distressed companies manage their debt. This can mean negotiating with creditors outside of court, filing for Chapter 11 bankruptcy protection, or guiding a company through a sale of its assets.
The three main roles are:
- Debtor-side: Representing the company in distress. You help them reorganize, negotiate debt reductions, and emerge as a viable business.
- Creditor-side: Representing banks, bondholders, or other creditors trying to recover what they're owed.
- Acquirer-side: Representing buyers who want to purchase assets out of bankruptcy at a discount (known as 363 sales).
The Day-to-Day
Junior associates draft motions and pleadings (restructuring is litigation-heavy), review loan documents and indentures, research bankruptcy code provisions, and help manage the complex timeline of a Chapter 11 case. You learn both litigation skills and transactional concepts, which makes the practice uniquely well-rounded.
Why People Love It
Restructuring lawyers often cite the intellectual challenge and the variety. No two restructurings are the same. You learn entire industries, because understanding the debtor's business is essential to the legal strategy. And because the practice is smaller than corporate or litigation, you get responsibility faster.
The Countercyclical Advantage
When M&A slows down during a recession, restructuring picks up. This makes it one of the most recession-proof practice areas in BigLaw. Your skills are always in demand somewhere in the economic cycle.
Exit Options
Restructuring lawyers move to distressed debt funds, turnaround consulting firms, in-house restructuring roles, and financial advisory firms. The combination of legal, financial, and strategic skills makes you versatile.
See which firms have leading restructuring practices in our firm directory.