"Our role is consistent: helping stakeholders find workable solutions." We sit down with lawyers at Latham & Watkins to hear more about the fascinating world of restructuring
Chambers Student: What does restructuring encompass?
Hugo Bowkett, partner: We advise companies, creditors and sponsors navigating financial stress or distress. The underlying issues vary – liquidity shortfalls, covenant breaches, overleveraged balance sheets –but our role is consistent: helping stakeholders find workable solutions.
We advise the full spectrum of stakeholders across the entire lifecycle of a restructuring. Our practice includes counselling creditors providing new money, structuring debt instruments, converting debt to equity, and guiding companies and directors through their ongoing obligations. We always aim to save the business – and we guide insolvencies when necessary. We are one of the few global elite full-service restructuring and insolvency firms. Many in our practice also work on private capital transactions, where bespoke investments reshape capital structures.
Jack Isaacs, partner: The work spans all sectors and, increasingly, all geographies. We rarely work on purely domestic UK cases. More often, we advise on matters involving businesses operating across Europe, Asia, and the US. Our clients include household names: Vue Cinemas, New Look, FatFace, Farfetch, Pizza Express, and many more.
“The practice touches on litigation, finance, and corporate – all through the lens of stress or distress.”
Stanzi Rosenthal, associate: Our court-related work adds another dimension to the practice. Many restructuring processes are court-overseen, so we prepare witness statements and court documents. We also draft the finance documents companies need to effect their restructuring and negotiate related corporate transactions. The practice touches on litigation, finance, and corporate – all through the lens of stress or distress.
CS: Could you give us an overview of what the restructuring process can look like, from start to finish?
HB: No two restructurings are the same – that's what makes the work so interesting. It’s not cookie-cutter. Every situation demands a different process. You start by identifying the underlying problem, then determine the best route to solve it, whether short-term or long-term. Problem solving is one of the most interesting aspects of our work, which requires a commercial mindset.
Consider a company that needs to raise cash before year end or face insolvency. We map out how to secure that capital: can existing lenders provide it or must we find new ones? Will they invest in the current structure, or does the capital structure need reshaping? Depending on the consent thresholds and third-party approvals – regulatory, tax, or otherwise – we then select the right process to reach the finish line.
We can reduce consent thresholds, if required, through tools including English law schemes of arrangement and restructuring plans – these are court-driven processes we know well. The matters we work on span across markets, so we might deploy a French process for a French company, or a Spanish one for a Spanish business; on a recent transaction, we used a US Chapter 11 paired with a Swedish process for a Swedish company. Latham’s cross-border capabilities mean we know how to tailor strategies to different jurisdictions and client needs.
CS: What would be some of the main tasks that a trainee would perform in these kinds of cases?
SR: Trainees often begin by drafting ancillary documents – such as corporate authorisations – that enable the company to enter into various transactions. This work requires preparing detailed summaries and a thorough understanding of the deal.
When a company is under stress, we advise directors on their duties and regularly join board calls. Trainees frequently prepare board call minutes, which are detailed, complex documents that capture critical discussions.
Trainees often project-manage multiple workstreams – coordinating across teams within the firm and with external counsel, maintaining document trackers, and keeping everyone aligned.
“Trainees also own the closing process: collecting signatures across multiple parties, bundling court documents, meeting submission deadlines, and keeping the entire team informed…”
Trainees also own the closing process: collecting signatures across multiple parties, bundling court documents, meeting submission deadlines, and keeping the entire team informed. On court-driven matters, trainees liaise directly with the court and manage key dates.
HB: Our varied work means trainees and juniors engage with a wide range of tasks from day one. We involve everyone and encourage trainees to take onresponsibility early in their careers.
CS: Do a lot of restructuring lawyers have an economic or maths background? Is that essential?
HB: I studied geography – so no, not essential! I did take maths at A-level, and you do need to grasp complex capital structures. However, we are not calculating IRR ourselves; we rely on financial advisers for that. A maths background helps, but we all come from different disciplines and bring different strengths. That diversity of experience adds depth and informs our restructuring work.
SR: As someone with an economics degree, I would not say that it directly prepared me for this work. An understanding of economic cycles – how they shift, and what challenges they create – can help, but you can build that awareness simply by reading the news and staying commercially informed.
CS: Have there been any particularly memorable moments or highlights for each of you?
HB: The New Look restructurings are close to my heart. I spent 2020 guiding the business through its restructuring, and when you are working alongside a household name, the stakes feel real. We worked long hours, but seeing the company survive on the high street – knowing we helped save over 11,000 jobs – makes the work worthwhile.
“The group provides ground handling and cargo services at airports worldwide – a healthy business that became deeply challenged almost overnight when air travel stopped.”
JI: We led the restructuring of Swissport during the pandemic – one of the first matters I worked on at Latham. The group provides ground handling and cargo services at airports worldwide – a healthy business that became deeply challenged almost overnight when air travel stopped. We worked against tight deadlines, and whilst stressful at times, we arrived at a good outcome.
SR: A highlight was working on the special administration of a payments company. When the company, which facilitated global money transfers, entered administration, we undertook a rigorous legal exercise to determine how to return to customers funds that were in transit. This matter required navigating complex rules with limited precedent, and we went back to black-letter law to determine how the rules should apply to the company’s circumstances.
CS: How do you see the market evolving over the next five years?
HB: The market evolves constantly, shaped by changes in law, new structures, and fresh tools. Nowadays, lawyers try to avoid court processes altogether and use consensual methods – what we now call liability management.
Over the next five years, restructuring lawyers will need to push boundaries and create innovative solutions.
We also need to consider how AI shapes industries across the board and how different sectors may be disrupted and experience distress. For instance, software companies face market pressure as AI adoption threatens typical SaaS business models.
The global economy also drives our work. Events in one region – geopolitical shocks, energy-price swings – ripple across the globe. Manufacturers worry about energy costs; lenders reassess risk. We always advise at the forefront of those events. No one can reliably predict five years ahead, so we work in shorter cycles and help our clients anticipate imminent challenges.
CS: What advice would you give to students interested in restructuring law?
JI: Restructuring trainees gain exposure to a wide range of practice areas, which makes the practice an excellent foundation for early-career lawyers. The work is varied, covering both advisory and transactional advice, with exposure to various clients and scenarios. The practice can be challenging but ultimately rewarding for our trainees as they expand their knowledge base.
“The work is varied, covering both advisory and transactional advice, with exposure to various clients and scenarios. The practice can be challenging but ultimately rewarding for our trainees as they expand their knowledge base.”
HB: If you have a growth mindset – and every trainee should – you will thrive in restructuring.
SR: Problem solving defines this work. Every situation is different; you will rarely face the same challenge twice. Restructuring forces you to confront new challenges and solve them – you stretch constantly, and that is part of the appeal.