Bankruptcy Slow as Hell Forum

[ExpOriental]

Just heard rumors of KE NSP RX firings - can TLS confirm? Rumor suggested race based, but hoping that is just salacious.

"Race-based KE NSP RX firings" has meme potential, but I think it needs more initialisms

[Anonymous User]

A lot of the KE RX NSPs who were told to look elsewhere, who I know of, are white. KE isn't super diverse anyway, would be bold of them to make firing decisions on race like that.

[Anonymous User]

Would associates at a big debtor shop (Weil/KE) be forced/expected to help out other corporate groups if Rx is slow? Could they help out litigation instead? I am joining one of these firms and have zero interest in corporate outside of restructuring.

1st year at one of these debtor shops. Probably going to quit at year 1 -- been forced to work exclusively corporate deals this year. Upside: I now have the kind of experience the SEC will look for in hiring, downsides: every day that I remain in corporate law.

[Anonymous User]

Would associates at a big debtor shop (Weil/KE) be forced/expected to help out other corporate groups if Rx is slow? Could they help out litigation instead? I am joining one of these firms and have zero interest in corporate outside of restructuring.

1st year at one of these debtor shops. Probably going to quit at year 1 -- been forced to work exclusively corporate deals this year. Upside: I now have the kind of experience the SEC will look for in hiring, downsides: every day that I remain in corporate law.

Looks like KE/Weil restructuring groups are not in a good shape now

[Anonymous User]

what's the situation looking like at PW/DPW?

[Anonymous User]

A lot of the KE RX NSPs who were told to look elsewhere, who I know of, are white. KE isn't super diverse anyway, would be bold of them to make firing decisions on race like that.

Any more context for this? I know KE RX had a brutal year last year (or at least between March - Nov), so it seems kind of heartless to cut these guys because of a few slow months after working them like that. Any chance these ppl were low performers, or didn't pull their weight during the covid bankruptcy waves, or have been unwilling to re-tool for SPAC wave? Really hoping to give K&E the benefit of the doubt here.

[Anonymous User]

if you look at fee applications, seems like lots of billable hours happening on (for example) Purdue Pharma, but I guess nobody wants to talk about that...

[LittleRedCorvette]

A lot of the KE RX NSPs who were told to look elsewhere, who I know of, are white. KE isn't super diverse anyway, would be bold of them to make firing decisions on race like that.

Any more context for this? I know KE RX had a brutal year last year (or at least between March - Nov), so it seems kind of heartless to cut these guys because of a few slow months after working them like that. Any chance these ppl were low performers, or didn't pull their weight during the covid bankruptcy waves, or have been unwilling to re-tool for SPAC wave? Really hoping to give K&E the benefit of the doubt here.

Racism is the only context or explanation necessary.

[Anonymous User]

A lot of the KE RX NSPs who were told to look elsewhere, who I know of, are white. KE isn't super diverse anyway, would be bold of them to make firing decisions on race like that.

Any more context for this? I know KE RX had a brutal year last year (or at least between March - Nov), so it seems kind of heartless to cut these guys because of a few slow months after working them like that. Any chance these ppl were low performers, or didn't pull their weight during the covid bankruptcy waves, or have been unwilling to re-tool for SPAC wave? Really hoping to give K&E the benefit of the doubt here.

Racism is the only context or explanation necessary.

Literally zero truth to any of this. Not every NSP gets shares—for the class year that was up, some made it, others didn’t. That’s it.

[Anonymous User]

Do you guys think it's a bad time for a newbie to enter the practice?

[Sackboy]

Do you guys think it's a bad time for a newbie to enter the practice?

Stop reading tea leaves.

[Anonymous User]

what's the situation looking like at PW/DPW?

Looks like at least better than big debtor shops (KE/Weil). Teams are smaller at DPW/PW and there are always hedgefunds/banks being interested in distressed credit even if small in size while big corp bankruptcy cases are limited. But of course, in general it looks like their hours are much better than last year for sure.

[Anonymous User]

So I work at one of these big debtor shops NYC. I'm a midlevel. My hours are complete garbage. My big question is, does this mean I'm not in "good standing" and therefore won't receive the special bonuses paid out in the coming months? I'm billing at 50% capacity right now (but expect it to pick up).

Should I be worried? I got good reviews, and as far as I know, partners don't have anything against me or my work. I've reached out for work numerous times, started doing some pro bono, etc. Just want to know what these firms think/do and whether they'll fire me.

[Anonymous User]

So I work at one of these big debtor shops NYC. I'm a midlevel. My hours are complete garbage. My big question is, does this mean I'm not in "good standing" and therefore won't receive the special bonuses paid out in the coming months? I'm billing at 50% capacity right now (but expect it to pick up).

Should I be worried? I got good reviews, and as far as I know, partners don't have anything against me or my work. I've reached out for work numerous times, started doing some pro bono, etc. Just want to know what these firms think/do and whether they'll fire me.

How many hours/week is 50% capacity?

I would think that if you're actively seeking out work they won't hold that against you. I think people showing less initiative and taking advantage of the slowdown to collect a paycheck w/out working are more likely to be axed. I also think that with profits per partner so insanely high, firms might be OK subsidizing restructuring for a while, particularly the debtor-shops where restructuring is often a profit-engine for the entire firm.

Why/when do you expect it to pick up?

[lolwutpar]

So I work at one of these big debtor shops NYC. I'm a midlevel. My hours are complete garbage. My big question is, does this mean I'm not in "good standing" and therefore won't receive the special bonuses paid out in the coming months? I'm billing at 50% capacity right now (but expect it to pick up).

Should I be worried? I got good reviews, and as far as I know, partners don't have anything against me or my work. I've reached out for work numerous times, started doing some pro bono, etc. Just want to know what these firms think/do and whether they'll fire me.

Good standing basically means you're not getting shitcanned - i.e. in the 3 or so months they give you to find a new job.

If your firm has a prorated hours requirement for eligibility then you likely won't get it. But most firms will true you up at the end of the year if you do hit hours. I don't care enough to look what Weil is doing, but I know they generally do not have an hours requirement, so if you're at Weil you're probably fine.

[Anonymous User]

So I work at one of these big debtor shops NYC. I'm a midlevel. My hours are complete garbage. My big question is, does this mean I'm not in "good standing" and therefore won't receive the special bonuses paid out in the coming months? I'm billing at 50% capacity right now (but expect it to pick up).

Should I be worried? I got good reviews, and as far as I know, partners don't have anything against me or my work. I've reached out for work numerous times, started doing some pro bono, etc. Just want to know what these firms think/do and whether they'll fire me.

There are always lean times. They can’t just pinkslip entire bankruptcy groups because when things heat up you need people know know what they’re doing.

I’d give it another month but then look into trying a few different angles, see if the credit group would be open to you doing a cross default analysis or debt review or something.

[Anonymous User]

I am in a different practice group but at a firm that specifically ties bonuses to "good standing." My first year at the firm, I learned the hard way that "good standing" meant 1800, which is the threshold for class advancement on paper (full bonus was 2000) - even though it was impossible to find something on paper on my firm's intranet that defined "good standing." Still advanced to the next class year, though, so who knows. At the end of the day, hard to generalize across firms what "good standing" means.

[Anonymous User]

[Multiple post]

[Anonymous User]

[Multiple post]

[Anonymous User]

Any updates here? Is bankruptcy still crazy slow? Do we expect that to change anytime soon?

[Anonymous User]

Would associates at a big debtor shop (Weil/KE) be forced/expected to help out other corporate groups if Rx is slow? Could they help out litigation instead? I am joining one of these firms and have zero interest in corporate outside of restructuring.

1st year at one of these debtor shops. Probably going to quit at year 1 -- been forced to work exclusively corporate deals this year. Upside: I now have the kind of experience the SEC will look for in hiring, downsides: every day that I remain in corporate law.

I'm in the same boat, but instead praying they are okay taking me on as a corporate associate if BK doesn't pick up....I'm going to be at like 1300 hours total for my first year