The Biglaw Firm That’s Raking In The Big Bucks Thanks To The Pandemic

(Image via Getty)

While other law firms have been conducting austerity measures thanks to the coronavirus, one Biglaw firm has been busying itself by making bank off the pandemic that’s been bringing its competitors nothing but pain.

Kirkland & Ellis, perhaps better known as the $4 billion firm, has already raked in almost $100 million thanks to its booming bankruptcy practice. How did they do it? Kirkland is outbilling its peers by representing 11 of the 24 large, public companies that have filed for bankruptcy thus far in 2020 — while no other firm has represented more than three. As reported by Bloomberg Law, the firm’s investment in this practice area has proven to be prudent:

Early results show Big Law competitors have so far been unable to topple Kirkland for what are often the most lucrative bankruptcy assignments: representing large, indebted companies negotiating a reprieve from creditors. Kirkland’s clientele includes brand name retailers such as J.C. Penney, Neiman Marcus, Pier 1 Imports, and Stage Stores.

“There’s a widely held perception that Kirkland has one of the best restructuring practices in the world,” said Kent Zimmermann, a consultant for law firms at the Zeughauser Group. “It’s another example of how it can really pay off to pick your spots and be among the best in chosen areas of focus. That’s what you’re seeing at Kirkland.”

Thus far, Kirkland has taken in more than $94 million related to those cases (and this amount doesn’t even include the firm’s representation of J.C. Penney and Intelstat, for which K&E has yet to report its early earnings). Given the pace of this year’s filings, we’re sure there’s more revenue to be made for Kirkland:

The 12 filings in May doubled the number of filings from January through April. And the 24 filings through five months this year are just one shy of the 25 large public company bankruptcies filed during all of 2019, according to [UCLA Professor Lynn] LoPucki’s bankruptcy database.

“This could be larger than either of the two earlier booms,” LoPucki said.

Kirkland & Ellis had a great 2019, but its 2020 could be even better thanks to all the distressed retailers and public companies that have been forced to file for bankruptcy due to COVID-19. Thanks to their bad luck, the firm will have a banner year.

Kirkland’s Bankruptcy Business Out-Billing Peers In Pandemic [Bloomberg Law]


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

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Is Defunding Police Departments The Answer?

The death of George Floyd has spurred national and international demonstrations as well as calls to defund police departments. It sounds like a radical idea but, in reality, depending on how such strategies are implemented, the approach is less radical than it sounds.

First, it doesn’t mean eliminating the police. “Disbanding” is a not a great banner name for the movement. Reimaging might be a better word choice.  No one believes we don’t need police at all. We just need to use them differently.

Police are charged with doing too much in this country. They not only arrest offenders, book them, then have to be available at criminal prosecutions, but they also do everything from being present at a car accident to talking down would-be suicide jumpers to acting as crossing guards.

This is too much to handle and a waste of resources. Some of the money allocated to police for larger staffs, more vehicles, and additional weaponry could be better dispersed among other agencies that could better handle the jobs that don’t have to do with making arrests.

Let me give you an example. The family of a client of mine called 911 because their child was in the midst of a psychotic episode. EMS workers came accompanied by police — two big burly guys. The kid spit at them. But for the father’s intervention (I might add that both the father and son were Caucasian), the kid would probably have been beaten. After police found cocaine on him, he was charged with drug possession and served a summons the day after he got out of the hospital. How’s that for encouragement to call 911?

911 is a great tool, but it shouldn’t necessitate bringing out the police. If the situation involves a person who is mentally ill, suffering from drug withdrawal, or simply homeless, a mental-health worker or social services outreach person might be a better fit. When I lived in Paris, years ago, and found a barely conscious drug user in my apartment hallway, needle sticking out from her leg, my first reaction was to call the police. My French neighbor intervened telling me, “No, here we call the firemen.” A much saner choice.  When the firemen arrived, the woman was removed without struggle and brought to a hospital, not jail. It’s automatically less confrontational, when the people intervening carry a first-aid kit rather than a gun and handcuffs.

At least one city in the United States is implementing this approach. In Austin, Texas, when 911 is called, the dispatcher asks if the caller needs police, fire, or mental health services, then sends out the appropriate team.

I’ve handled dozens of cases of people charged with felony assaults simply because, in the course of being arrested for something minor, they flailed their arms which led to rougher police action and an injury to the cop. Even if minor, any injury to a police officer makes the crime a felony. If a mental health worker had attended, the situation might not have spun out of control.

Police departments around the country have grown fat with funding since the 9/11 terrorist attacks. Even cops in small towns are able to purchase paramilitary equipment which, when used, makes them daunting presences rather than neighborhood resources and creates further barriers between them and the people they’re charged with protecting.

There’s no doubt police are needed to enforce the law, but they’re not miracle workers. They should not be thrown into situations (specifically with the mentally ill) for which they’re not trained. Some are racist. Many are not. They’re just trying to earn a living.

Perhaps we’ve asked them to do too much. What better time than now to reorient our expectations of them, both for their safety and everyone else’s.  That’s what “disbanding” is about.


Toni Messina has tried over 100 cases and has been practicing criminal law and immigration since 1990. You can follow her on Twitter: @tonitamess.

Eddie Lampert Continuing To Spread International Goodwill

RBZ abandons fixed forex exchange system

People walk past the Reserve Bank of Zimbabwe building in Harare, Zimbabwe, February 25, 2019. REUTERS/Philimon Bulawayo

“It was resolved that a formal market-based system of foreign exchange trading will be put in place. To ensure that foreign currency trades were monitored in real-time, the committee (Monetary Policy Committee) urged the bank to expedite the implementation of the electronic foreign exchange trading system for compulsory use by bureaux de change,”  RBZ governor John Mangudya  said in a statement yesterday.

“The committee also urged more active application of the open market operations bills to deal with any identified excess liquidity balances in the market.”

The decision by the RBZ boss came following a sitting of the bank’s Monetary Policy Committee on May 22, 2020 which considered a wide range of issues confronting the local economy.

Currently, the entire market whether formal or informal is operating based on the daily parallel market rates which continue to fuel the annual inflation rate that stood at 765,57% as of April.

Renowned US economist Steve Hanke has described the Zimdollar as the second junkiest currency in the world. “Today, the parallel market rate has traded between 80 and 85. In mid May 2020, it was 40. An increase of 100% in three weeks reflects the black market implosion,” former Finance minister, Tendai Biti, tweeted.”The restrictive measures by the central bank are corroding the Zimdollar and, therefore, self-defeating. They have run out of ideas,” he added.

As a result of the continued fall of the Zimdollar, the RBZ has been seeking to promote production to boost exports. Mangudya also announced that there was need to release more financial resources for the productive sectors of the economy by banks.

“To assist that process, the committee resolved to reduce the statutory reserve ratio from the current 4,5% to 2,5% with effect from June 8, 2020,” he said.

The statutory reserve ratio refers to the percentage of a bank’s deposit holdings that must be preserved by the central bank as a form of security.

Mangudya added: “The committee also resolved to reinstate, with effect from July 1, 2020, the 30-day limit of liquidating surplus foreign exchange receipts from exports in order to ensure that more foreign exchange was released onto the market.”

Post published in: Business

Morning Docket: 06.09.20

* A judge in Florida is in hot water for pretending to be her son’s lawyer during an interrogation. Wonder if she told investigators her name was “Jerry Gallo“… [Daily Business Review]

* 3M is suing a merchant who is selling PPE on Amazon for 18 times the listing price. [Wall Street Journal]

* A Florida lawyer who appeared on beaches dressed as the Grim Reaper has attended recent protests in the same costume. [Fox News]

* George Floyd’s lawyer is asking the United Nations to intervene in his case and make recommendations for police reform. [Newsweek]

* Prince Andrew seems royally screwed over an investigation into his connections with Jeffrey Epstein. [AP]

* A lawyer has been suspended from practice for filing a $67 million lawsuit over pants he lost at the dry cleaners. Maybe the pants were just really nice? [ABA Journal]


Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.

Drought, coronavirus, hunger: Zimbabwe’s misery deepens

When Zimbabwe went into coronavirus lockdown in late March,

it hit the country’s working poor hard. No economic activity meant no work, no money and little to no food.

Unemployment before the outbreak was already rampant in Zimbabwe, one of Africa’s poorest countries. Almost 80 per cent of its 14.5 million people work in the informal sector, like street vendors and food stalls – trade that has virtually stopped in the lockdown. Many people are struggling to put food on the table and government help has not yet reached them.

Zimbabwe is still grappling with the effects of a devastating drought last year when it was also listed 109 out of 117 countries on the 2019 Global Hunger Index, a ranking considered “serious”.

The United Nations has warned that the coronavirus pandemic could push millions in Africa into extreme poverty and lead to famines of “biblical proportions” within months if immediate action wasn’t taken.

The situation has forced people in Zimbabwe to seek food wherever they can, even scraps from rubbish.

Samantha Murozoki, a lawyer from Chitungwiza, a satellite town of Zimbabwe’s capital Harare, took pity on her hungry neighbours and started serving porridge to hundreds of children and adults, paid for out of her own pocket.

“I started feeding 24 people using my own groceries, but the number kept on rising daily beyond my resources. I sold a few belongings and now, well-wishers are assisting us. Most of the beneficiaries are informal traders or their children, cross-border traders, and children of parents in the diaspora,” she told South China Morning Post.

Others have joined the cause. Sisters Sandra Chikwama and Caroline Bushu from Harare’s poorest suburb Epworth, started a similar meal scheme after seeing children eat rotten food at local dump.

“It made us realise that many people were silently starving. So, we started to cook porridge for 45 children using our own stocks. We are now serving 300 children and each day. We wake up to more numbers. We have added supper,” Chikwama said.

Nyarai Nyamande, a goods vendor and mother-of-four whose income has been wiped out since the lockdown said food kitchens helped her family. “I last bought subsidised meal two months ago and I don’t have US$6 to buy a bucket of maize. My four children are getting free food from the kitchen and when they come home, they just sleep.”

Terrence Mugova from Bulawayo, Zimbabwe’s second largest city, feeds about 4,000 households a month through his TangoTab Feed the City Initiative.

He said he has served more than 92,000 meals since July 2018 and demand for his free food has increased since the lockdown.

“We estimate that there are over 10,000 households needing ongoing food assistance. There are many people who have become vulnerable because they can no longer earn an income,” he said.

Zimbabwe has experienced some of the harshest droughts in decades, but its situation has been compounded by currency and fuel shortages, low agricultural output and hyperinflation at 760 per cent that has made food prices unaffordable to many people.

The UN estimated that 7.7 million people, almost half of the country’s population, were food insecure, meaning they lacked reliable access to a sufficient quantity of affordable, nutritious food. More than 4 million of them live in rural areas and millions in towns and cities survive on less than US$1.25 per day.

The World Food Programme (WFP) is leading humanitarian efforts to feed millions in Zimbabwe and has warned of more food shortages.

“The impact is glaringly significant in the urban areas and Covid-19 is one of the main contributing factors,” said Eddie Rowe, WFP’s Zimbabwe country director.

“The government has locked businesses and daily lives and we know that 80 per cent of the population engages in informal activity which allows them to access daily income that sustains their food needs.”

Rowe said the WFP was extending its assistance until at least April 2021.

“By January, we assisted 2.7 million people and then scaled to 3.6 million people from February to April covering all 60 rural districts. In the urban areas we were aiding about 100,000 people with monthly cash assistance in eight domains,” he said.

The WFP needs US$260 million to continue providing food assistance to Zimbabwe up to December 2020 and cash assistance until April 2021. It needs US$15 million for protective personal equipment for its frontline workers and awareness campaigns.

Paul Mavima, Zimbabwe’s Public Service and Social Welfare minister, said the government had expanded social protection programmes.

The government aims to give US$7 handouts to a million people from this month. With WFP help, it has provided food assistance to more than 1.3 million households, but this has not been enough.

Zimbabwe has reported 282 confirmed Covid-19 cases and four deaths, but the actual number could be much higher because of limited testing.

Tonderayi Mukeredzi is an independent journalist from Harare in Zimbabwe

Zimbabwe and US Diplomacy – this Time the Fight is About George Floyd

Zekiya Louis (R) and Manuela Ramirez (L) handing out free water to protesters in Times Square, New York during a protest over the death of George Floyd. Credit: James Reinl/IPSBULAWAYO, Zimbabwe, Jun 8 2020 (IPS) – “As tall as he is, if he continues to do that I will kick him out of the country,” thundered Zimbabwe’s former President Robert Mugabe in 2008, his anger aimed at the then United States ambassador James McGee after the diplomat questioned the results of Zimbabwe’s 2008 general elections.

It was not the first time the late president had threatened a U.S. diplomat. In 2005, Mugabe had threatened to throw out then U.S. ambassador to Zimbabwe, Christopher Dell, telling him “he could go to hell” after Washington’s top man in Harare had criticised the Mugabe administration.

But now, with a new president and administration at the helm, it appears as if the long-running frosty relations between the countries continues.

The recent diplomatic spat between Zimbabwe and the U.S. began after a senior U.S. official accused the southern African country of fomenting unrests across America in the wake of the killing of an unarmed African American man, George Floyd, on May 25.

  • Floyd died after a white Minneapolis police officer kneeled on his neck for almost nine minutes. His death resulted in nationwide protests across the U.S. and a nationwide movement against police violence and racism. People across the world have joined in solidarity to the #BlackLivesMatter protests.

Last week, the Zimbabwean government summoned the U.S. ambassador Brian Nichols to “discuss” comments made by the Trump administration’s national security advisor Robert O’Brien that described Zimbabwe as a “foreign adversary.” 

While the current administration under President Emmerson Mnangagwa has shied away from Mugabe’s bellicose tone, the country’s foreign affairs minister Sibusiso Moyo said in a statement released after his meeting with Nichols that comments made by O’Brien were “false and deeply damaging to deeply damaging to a relationship already complicated due to years of prescriptive megaphone diplomacy and punitive economic sanctions”.

  • In 2003 the U.S. first imposed travel and financial restrictions on Mugabe, his inner circle and various state companies linked to human rights abuses. They were extended for another year in March.

Moyo added that Zimbabwe had taken note of “the measures deployed by the U.S. authorities to deal with the challenges currently confronting them. At the same time, we recall the harsh U.S. criticism and condemnation of our own response to multiple instances of illegal, violent civil unrest”.

These comments also came days after the U.S. and the European Union had released a joint statement criticising a spate of human rights violations in Zimbabwe where members of the police and the military were accused of assaulting and kidnapping citizens.

However, analysts note that the frosty diplomatic relations between the two countries have come a long way, and it will take time to restore mutual trust and respect.

Even in the Obama Administration, Zimbabwe was an ‘easy hit’. There were far more authoritarian regimes than Robert Mugabe’s but, with the ending of Apartheid, Zimbabwe in its land nationalisations presented itself as a ‘black/white’ issue, an Apartheid in reverse. So it became an easy country to criticise because what were complex issues could be presented so starkly and simply, Stephen Chan, Professor of World Politics at the University of London’s School of Oriental and African Studies, told IPS.

Two of America’s recent ambassadors, Johnnie Carson and, currently, Brian Nichols, are black – so there are presentational issues in being too critical. In Zambia, the ‘offending’ U.S. Ambassador who was white was recalled at the demand of the Zambian Government, Chan told IPS by email.

Despite these concerns and ongoing rift with the U.S. and EU, the Zimbabwean government  has turned to public relations lobbyists to reboot its battered imagine.

The Zimbabwe regime is propped up by human rights abuses, by repression, by silencing the masses, this is why they continue with abuses while hoping that propaganda and public relations will clean their soiled image internationally, Dewa Mavhinga, Human Rights Watch’s southern Africa director, told IPS.

As a result, the Zimbabwe government spends huge amounts paying PR companies in Washington DC in the hope that those companies will help with image issues, but the truth is simply that the Zimbabwe government must stop abuses and start respecting human rights. No-one in the international community will respect a country that allows abductions, torture and rampant rape of women, Dewa told IPS.

Government spokesperson Nick Mangwana would later tell local media that Zimbabwe was not seeking to be enemies with the U.S., something Chan, the international politics professor, said Zimbabwe cannot afford.

Zimbabwe desperately needs to retain as good a set of relations as possible with the U.S. as part of the West. The country is basically bankrupt. It almost begs for help. Even in moments of argument, it cannot afford to alienate a country like the U.S.,” Chan said.

While Zimbabwe has in the past threatened to expel meddlesome U.S. ambassadors, the current government has resisted the temptation.

Removing an ambassador would be a major diplomatic step. If the Zimbabwean government were to remove him (ambassador Nichols), the U.S. would likely react by suspending, temporarily at least, Zimbabwean diplomats in the U.S. or reduce its diplomatic presence in Zimbabwean until the government made some meaningful progress on political and economic reforms, Nathan Hayes, an analyst with the United Kingdom-based Economist Intelligence Unit, told IPS.

Ultimately, it would not be a game Zimbabwe would win,” he said.

After he was summoned by Zimbabwe’s foreign affairs minister, U.S. ambassador Nichols issued his own statement, looking beyond the ongoing row which served as a reminder of the U.S. continuing humanitarian support of Zimbabwe.

The American people’s unwavering commitment to the welfare of Zimbabwe’s people has kept us the largest assistance donor, Nichols said.

In January this year, the U.S. reported that it had provided $318 million to Zimbabwe in 2019, adding notwithstanding ongoing anti-democratic and repressive practices by the Government of Zimbabwe which continue to affect the bilateral relationship, the United States remains the ‎largest provider of health and humanitarian assistance”.

According to the U.S. Agency for International Aid (USAID), the U.S. has provided more than $3.2 billion in development assistance to Zimbabwe since its independence in 1980”.

Zimbabwe must be careful about biting the hand that feeds it, Piers Pigou, Crisis Group’s Senior Consultant for Southern Africa, told IPS.

The colourful posturing and allegations from the government that are levelled at successive U.S. Ambassadors, invariably reflect a clumsy ideological posturing that seeks to avoid an empirically rooted engagement on the substantive issues of contestation,” Pigou told IPS.  

Zimbabwe’s credibility as a commentator and protector of human rights will only develop once it puts in place, develops and invests in the institutional capacity, competencies and independence of its democracy supporting institutions and builds an identifiable culture of accountability, he said.

As anger against the U.S. swelled across the globe in condemnation of Floyd’s death, in Zimbabwe ruling Zanu PF supporters had planned to hold a demonstration on Jun. 4 outside the U.S. embassy in Harare in what could have done nothing to promote entente between the two countries.

Police denied the ruling party supporters permission to stage the protest, citing COVID-19 restrictions. 

“The U.S. and Zimbabwe have open antagonism. There is a clash of pretentious political ideologies,” William Mpofu, a political analyst and researcher at the University of the Witwatersrand in South Africa, told IPS.

“Under Mugabe the ideology was pretentious pan-Africanist radicalism. The U.S. has pretended to democracy and liberalism. These two rhetorics have a natural antagonism but they are both fake and fundamentalist. The U.S. can do without Zimbabwe. Zimbabwe cannot survive without U.S.,” Mpofu said.

With coronavirus lockdown restrictions that have seen countrywide state sanctioned human rights abuses in Zimbabwe in place indefinitely, and with general elections coming in 2023, elections historically marred by state sponsored repression, analysts are watching whether this will further sour relations between the two countries.

Post published in: Featured

Zimbabwe grain inefficiencies continue

HARARE, ZIMBABWE — Despite a slight increase in production, Zimbabwe’s grain deficit is anticipated to grow to 1.17 million tonnes, said Reuters, citing an official crop report from the ministry of lands and agriculture. The country’s continued grain production inefficiencies increase its food security issues.

According to the United Nations World Food Programme (WFP), lack of access to markets and the rural Zimbabweans dependency on rain-fed agricultural is affecting the country’s food security.

The ministry estimates grain output will increase to 1.060 million tonnes a small increase compared to the 944,000 tonnes of grain harvested last year.

According to the report, grain stocks in more than half of Zimbabwe’s 60 rural districts will not last six months.

COVID-19 could prove “disastrous” for impoverished Zimbabwe, UNDP study finds

Harare — The COVID-19 pandemic and global knock-on effects could sink or stall Zimbabwe’s ambitious reform agenda as well as efforts to revive its flagging economy, with “disastrous” consequences for the landlocked East African country’s poor and vulnerable people, according to a new UNDP impact assessment.

Zimbabwe’s economy shrank by some 6.5 percent in 2019, and the World Bank projects a further contraction of 5 to 10 percent in 2020 as a result of the pandemic. This would be “disastrous, affecting, disproportionately, the poor and vulnerable, small and informal businesses, and small-scale agricultural producers,” the assessment says. Slower imports could cause shortages and spiking inflation, deterring badly needed investment and worsening widespread poverty among Zimbabwe’s 14 million people.

Mineral production could plunge by 60 percent in the first quarter of 2020 alone as companies reduce output, meaning a potential loss of US$400 million in revenue, while tourism and foreign remittances—both vital to the economy—are plummeting.

COVID-19 also risks overwhelming Zimbabwe’s fragile and underfunded health sector—which employs 1.6 physicians and 7.2 nurses for every 10,000 people, well below WHO recommendations—which is frequently disrupted by strikes. And with some 59 percent of the population already food-insecure and relying on food assistance, global slowdowns are projected to cause a surge in malnutrition, stunting, wasting, and disease.

UNDP’s recommendations, which will inform programs and policies in response to the pandemic, include:

• Halting the spread of COVID-19 through measures such as curbing people’s mobility.

• Keeping small businesses and some more established formal businesses operational even during lockdown.

• Making critical investments in basic services such as water and sanitation and ensuring strict adherence to practices including use of face masks, regular handwashing, and social distancing.

• Mobilizing additional resources by urgently tackling illicit financial flows from the country, especially from the extractive sector.

• Strengthening the health system by addressing chronic lack of finances, shortages of trained and motivated health workers; improving service delivery and access to essential medicine and supplies; fortifying health information system; and promoting good governance in the sector.

• Cushioning a large segment of the population who are poor and vulnerable such as small farmers, petty traders, and people living with HIV and AIDS, through targeted social transfers.

• Making credit more affordable and promoting entrepreneurship.

• Promoting good governance and respect for human rights.

Support on the ground

At the country level, UNDP has allocated US$35.9 million budgeted support through resource mobilization and re-programming of funds. The Global Fund has approved US$4.1 million for procurement of personal protective equipment (PPE) to ensure adequate and timely preparation and response, while additional funding will provide hazard pay for frontline health workers at high risk of contracting the disease and augment diagnostic and laboratory capacities of national health facilities.

To ensure business continuity under lockdown and related restrictions, UNDP and other UN agencies are providing e-governance support for core functions of the country’s executive, judicial, and legislative branches and by key constitutional commissions. Through its Youth Connekt platform, UNDP is also working to raise awareness, promote prevention measures, and inform the public about contact tracing and practicing proper hygiene.

UNDP is also expanding efforts to link victims of gender-based violence to essential services and sustain HIV/AIDS treatment and prevention, as well as working with more than 870,000 small-holder farmers to expand community-based disease surveillance, support isolation centers, and raise awareness of how to avoid contracting or spreading COVID-19.

To build back better, UNDP is working with the World Bank and other UN agencies to assess potential socio-economic impacts and make recommendations and provide policy guidance to the recovery process. The agency is also exploring alternative food distribution models with the informal sector to sustain key activities while adhering to COVID19 mitigation measures such as safe transport and markets.