We represent creditors, but not just any creditors. We represent bondholders, debt traders,
hedge funds, contract parties and holders of significant secured and unsecured
claims, for example. But we don't
represent large institutional creditors or banks.
The reason for this is simple: conflicts. Big banks and other institutions typically
require their counsel to agree never to take a position in any case that is potentially
contrary to their interests, even if the client is not involved in the
other case. Many banks thus
require that the law firms that represent that bank agree never to advance a
particular legal theory, even if that theory might benefit the law firm's other
clients, and even if the bank is not itself involved in the case where the
theory might help the other client.
We will never agree to do anything less than
pursue every legitimate advantage on behalf of our clients. What this means in practice is that we don't get a lot
of business from big banks or insurance companies. It also
means that we have a very active creditor practice, with a small stable of
repeat creditor clients that appreciate our zealous advocacy, our independence, and our undivided loyalty.
Case
in point: In the Enron bankruptcy, ST&G
represented several hedge funds that together held over $2 billion in Enron
debt. Unhindered by the need to avoid
"offending" any of the large banks and institutional creditors in the
case, ST&G and its clients played an extremely active and aggressive role,
pursuing novel legal theories and raising issues that no other party could (or
would) raise. ST&G thus was instrumental
in the formulation of the ultimate plan of reorganization, which provided our
clients with recoveries that were dramatically greater
than those that the creditors otherwise would have obtained.
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