What the hell is going on at WGM these days?

What do you mean?

Why would this indicate that something is going on at WGM, wouldn't this indicate that the hedge bubble is about to burst since Greenhill is losing a Vice-Chairman (I think that's the official title) to a Restructuring Practice?

Will WGM's restructuring practice fall apart (or otherwise lose its edge) if all these partners defect to CWT?

Is Weil's bankruptcy practice still even the most respected???

Re 12:13:

Yes. If you have a complex bankruptcy issue, you go to Weil.

Wrong... you go to Skadden or Kirkland. If both of those are conflicted out, you go to Weil.

I would love to work for Weil.

I will make sure to let you know how it goes for me.

Ball. Leake. Rapasari. Basta. Palmer Rapasardi (again). Davis. All their rising stars are gone. Its just Marcia and Marty. Disagree with the above posters. You USED TO go to Weil for major debtor work. No longer. Its Skadden and Kirkland on the debtor side and Milbank and Akin on the creditor side.

Why is everybody leaving Weil and why is Harvey coming back? Is he bringing a book of business with him?

Should an associate starting off at Weil avoid their bankruptcy department?

There is no need to avoid the department for a new associate. Its still one of the better bankruptcy firms in the country. Just understand they've been bleeding a lot of partners and associates lately, so that may be an opportunity for you or it could mean trouble. At this point its still unclear. However, getting Miller back is a positive event for them.

Rumor is that Marty is the 4th to go.

Rumor is that Marty is the 4th to go.

Marty who? And are these departures confirmed now?

Bienenstock. Departures of the 4 WGM partners to go to CWT are still only rumour at this point.

Even with the departures, Weil will have a top 5 bankruptcy practice, it just isnt the 800 pound gorilla it used to be. Harvery was like Flom and Lipton, a guy that basically created a practice area. Before him, the big firms didnt view bankruptcy as a real practice area. Look at most of the major firm bankruptcy partners in their 60s - almost all came from small shops that merged into the big firms.

Harvey was able to keep the 25 Weil bankruptcy partners in line through force of personality and cash. When he left, the conflicts he kept in check came out in the open.

Disagree with above. You STILL go to Weil for major bankruptcy stuff. Agreed that Skadden and K&E have raised their profiles, but that's only because Weil was conflicted out most of the recent major debtor filings. Weil is still the place to go. If all these defections happen, who knows though...

Bienenstock is an outstanding lawyer, though he maintains a firm grip on the bankruptcy deparment.

One plausible explanation for this would be that Weil's bankruptcy partners are in fact leaving and they needed a hail mary to save their cornerstone practice. If that is true (just speculation), Miller could stick around just long enough to provide stability in the practice and re-assure clients that the practice is sound. In the meantime, I would expect that Weil would then put a full court press for a top lateral.

If that's not what is going on, then Weil must be shaking up for a reason. Has their practice slipped? Have they lost any engagements for reasons other than conflict?

i bet martin is not leaving. the press release made clear he remains co-head of the department. as for opportunities and who is the best — consider that firms kill (pay top dollar) to hire weil bankruptcy attorneys to start, run and populate their bankruptcy departments. weil always has been and always will be a target. in fact, the leading figures at most of the other bankruptcy departments in this city (skadden, kirkland, fried frank, cadwalader, etc) are former weil partners and associates. the reason simply is that weil offers the best training, the best experience and the best opportunities — second to none. departures are a natural part of the cycle. they provide an opportunity for the person that leaves to negotiate for top dollar and top billing based on the weil reputation and departures create opportunities for junior and senior associates at weil to fill more senior rolls. as for the future — clearly weil is still tops. as others have pointed out, long lasting relationships in the automotive and airline sector have conflicted them out of representing the debtor in a few of the recent large cases, but they still represented the largest or most significant creditors in each and every one of those cases. weil is still the first place you call if youre a debtor, creditor or any other party with a stake in a troubled enterprise. even more so now that harvey is going back. a brilliant lawyer and a good man. he’s been a mentor to many that have passed through weil’s doors over the years, and many more that were never even there. they’re lucky to have him back.

rumor is that several top associates left for Kirkland. I heard others want to follow. i am sure the recent rumors will see many leave for CW. whether or not harvey miller is around for the present (i.e. the next 5-10 years), all of the star associate departures is not good for the future.

As a senior Weil BFR attorney, I can tell you that the BFR practice has lost a lot of luster over the past 5 years. Other than Enron and WorldCom six years ago, we have not really done squat. Yes, we have had conflicts, but most of the reason is that Kirkland and Skadden have just done a better job at landing clients, a fact that Weil refuses to admit.

In the past 9 months, we have now lost 5 rising star partners and 5-10 rising associates, most of whom went to Kirkland. We don't have the talent pool to staff more than one big case right now. Most of us view the Harvey announcement as a life preserver. Maybe he can restore our prominence. Trust me, plenty of Weil senior associates want to go to Kirkland. Kirkland pays more, has the best cases, and has a more flexible approach to partnership. Weil will always pay the bare minimum and pass on highly talented associates because the firm does not want to pay them more or invest in their future. When you create an environment like that, don't be surprised when your top associates and rising partners bail out and leave the firm in its current predicament.

When did Weil last make a partner in BFR? I think it has been a few years and I thought that was a big reason so many top associates left (almost like they'e had a moratorium on new BFR partners).

To the Weil BFR associate:

Other than Basta, who are the "rising star partners" that left in the last 9 months?

The last NY associate to make partner in BFR was Shai and that was 4-5 years ago. The partnership track has been abysmal and that has been a major blow to associate morale. The few senior associates left are waiting for other opportunities, and most of us are looking around.

I would say that George is a rising star partner. He is a young, talented guy that is really starting to develop his name. Deryck and John have been out longer and are highly regarded but have been under the Harvey-Martin shadow for a long time.

BFR Associate - were there strong candidates for partnership who just couldn't make it because there wasn't room or has Weil not been developing talent as well as in the past? Are associates leaving earlier in the careers than they once did?

As for associate defections: (1) Three mid-level WGM associates left for Kirkland this past month. Whether they were "top" associates is very much a matter of personal opinion. They all enjoyed working with Paul Basta when he was at WGM and liked the idea of being a non-equity "partner" at Kirkland after 6 years plus Kirkland's recent above market bonuses. (2) One reason why there are fewer people making BFR partner at WGM is the growth of outside non-law opportunities. Why hustle it out for partner and continue in the pie-eating contest when you can go to a bank or a fund (as another, and imho excellent, mid-level did this past week).

As for not getting some of the big debtor case, Weil was conflicted out of the auto parts makers (Dana, C&A, Delphi) by GM, Delta by GE, and Refco by tommy lee.

The real question is whether (or perhaps when) St. vinnys transfers to CWT.

Let's be realistic here. WGM created the practice. It had the only talent, the only training and the best enviornment (tight-knit group that worked hard and had fun). They made a fortune for years. With the indicators starting to line up that a economic bust is on the horizon, firms are throwing money at these associates and partners to build up their ranks so they can reap some of the reward in the next downcycle. These are all good firms, no doubt, but they simply can't match WGM for the experience it provides and that hasn't changed (other than perhaps improving with Harvey's return). If the partners mentioned are leaving, no doubt it will be to head up a group at another firm. Isn't that the type of opportunity you want as an associate or junior partner? Is it any wonder that every major firm wants WGM associates and partners? Your views are a bit skewed if you think that the opportunities created by working at WGM are a bad thing and that partners leaving to head up a department at a major firm is a negative. It only creates opportunity for other associates and partners.

Conflict of Interest was mentioned perhaps as the most common theme, along with the struggle to make partner. But why would these issues be any different at the firm now, or in comparison to other firms? Why wouldn't these same issues have affected the firm as they built themselves into the most dominant bankruptcy law firm... ever? Didn't Harvey Miller win "Bankruptcy Lawyer of the Century"?