Paul Hastings hires Stroock restructuring team

Paul Hastings hires Stroock restructuring team

As Stroock acknowledges the group's desire for a broader firm environment, Stroock's deal promises to propel Los Angeles' giant up the bankruptcies rankings

Stroock & Stroock & Lavan has hired a high-rated restructuring team of 18 partners in a landmark deal for Los Angeles-based Paul Hastings.

As a result of the large-scale hiring, Paul Hastings' restructuring team is likely to rise far into the rankings, with a headcount easily doubled to more than 70. Despite the fact that the exact number of Stroock associates and counsel moving over is yet to be confirmed, the majority of Stroock's team, which comprised around 50 lawyers, is expected to move.

As a result of these hires, Paul Hastings will increase its strength in key areas of finance, such as structured credit, private credit, capital markets and real estate financing. Additionally, they will add significant influence to Paul Hastings' New York office, where Kristopher Hansen, the deputy director, is based.

In Paul Hastings Chairman Seth Zachary's words: "This is a group that stands out due to its outstanding track record of creative and client-focused ventures among alternative investment funds, credit funds, direct lenders and other asset managers and banks."

They have experienced tremendous growth in the past 15 years through full-lifecycle client service, including core bankruptcy and restructuring, distressed M&A/corporate restructuring, special situations financing and impact litigation.

Stroock had previously referred to its restructuring group as a 'marquee group' but pointed out that it was also expanding its practice areas while recognizing its status as a "mid-sized" firm.

In a statement, Jeff Keitelman said: "We're saddened to see this group depart, but understand they sought a more structured environment. This is a logical instance where interests diverged, but it's a respectful parting of ways. We wish them the best.

"It's critical to keep a mid-size firm approach and to concentrate on the areas where we excel. Lattice partners continue to join us steadily. In the past 18 months, we've added 20 or more partners across corporate, IP, white collar/corporate investigations, tax and real estate and hired 40 or more additional [non-partners] attorneys."

Hansen, who is likely to co-chair the financial restructuring practice with current head Luc Despins in his new firm, talked about the "synergies" between his team and Paul Hastings' core financial practices as "amazing."

During his time with Stroock, he served as a member of four separate business units: restructuring, debt finance, distressed reorganizations and impact litigation.

Several awards have been won for its work. Stroock advised on the $20bn Caesars chapter 11 cases and provided legal advice on five unsecured creditors' committee representations during the first year of the Covid-19 pandemic, as well as more than 30 ad hoc lender and noteholder, loan agent and company-side cases with aggregate restructured debt exceeding $40bn, according to previously released Stroock publicity.

This follows on from Paul Hastings having a great year in 2021, increasing its global revenue by 20 percent to $1.57bn and increasing PEP by 20.5 percent.