DLA Piper is attempting to ramp up its restructuring practice in Dallas as a record number of business bankruptcies has hit Texas in the first half of the year.
Many observers – including new partner James Muenker – expect that activity will only accelerate.
Muenker, who cut his teeth at Andrews Kurth and Weil, practiced for the last decade at the Dallas bankruptcy boutique Neligan Foley. He says he knew DLA Piper would be a good fit personally and professionally because he has known and worked with Tom Califano, U.S. chair and global co-chair of the firm’s restructuring practice, and several other partners at DLA.
“The depth and breadth of DLA’s platform coupled with their commitment to grow in Texas presented a unique and unparalleled opportunity,” he said.
Marc Katz, managing partner of the DLA Piper Dallas office, says the Texas legal market is experiencing more demand for top bankruptcy talent as businesses and corporations navigate these uncertain times.
Over the last several months, Akin Gump, Paul Hastings, Chamberlain Hrdlicka, Dorsey, Bradley and Fox Rothschild have all added partners in Texas to their bankruptcy and restructuring practices. Dating back to last year, the list also includes Munsch Hardt, Sidley, Katten Muchin and Shearman & Sterling.
“Adding an experienced bankruptcy lawyer with an understanding of the Dallas landscape, such as James, is a testament to our growing Texas footprint,” Katz said. “We were extremely impressed with James’ skillset, experience and reputation, and jumped at the opportunity to add someone of his caliber.”
Muenker’s workload tells the story of the current bankruptcy avalanche precipitated by the COVID-19 pandemic and low oil and gas prices. He is currently involved in a Chapter 11 case involving a medical device company that was adversely affected by the slowdown in elective surgeries. He is also involved in several restructuring matters in the energy sector.
The DLA Piper Dallas office is representing two companies – TriVascular Sales LLC and Endologix Inc. – that filed for bankruptcy protection in the Northern District of Texas this month. Associate Andrew Zollinger is the attorney listed in the filings of both matters.
“I expect to see more of what we saw in the first half of 2020, including more retail and energy filings, but I also expect to see more filings in other industries that have been hit hard by the slowdown, particularly in the hospitality industry,” Muenker said.
“The public and private responses to the crisis to date have provided short term relief for a lot of businesses that will need some sort of restructuring in the near future. Restructuring professionals will be busy for the foreseeable future.”