A First: Law Firm Finds New Life, Not Death, in Bankruptcy

A South Florida law firm recently used bankruptcy to do something no one in the legal industry has done before: sell itself to another firm.

Companies across corporate America, from Blockbuster to General Motors, have sought court protection while they try to sell continuing businesses to potential white knights. But until last week, law firms usually used bankruptcy to shut down.

So the $7.8 million cash-and-debt sale of midsize law firm Ruden McClosky out of bankruptcy to fellow South Florida law firm Greenspoon Marder made legal and bankruptcy history, as I reported in this WSJ story. What’s more, the deal will likely inspire other struggling law firms to turn to bankruptcy as a place to find new life rather than a place to die, restructuring professionals say.

Read the rest of the article at the Wall Street Journal