Weil, Gotshal & Manges has brought in lawyers from Davis Polk & Wardwell to advise on its strategic options as the firm faces a growing wave of partner departures and the collapse of merger discussions, according to people familiar with the matter.
The Davis Polk team includes restructuring partner Brian Resnick, while Davis Polk Chair and Managing Partner Neil Barr is also advising Weil, reported on October 27. Another legal news separately reported that Resnick and other Davis Polk lawyers are helping Weil assess its future. Neither firm has publicly announced the engagement.
The development places a leading U.S. law firm’s own business under the scrutiny normally associated with a distressed-company mandate. The advice reportedly covers restructuring options, with a potential wind-down among the possibilities described in media reports. That does not mean Weil has decided to close or pursue a formal insolvency process. The firm’s ultimate direction remains unsettled.
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Why the mandate matters
Resnick is a nationally recognized restructuring and bankruptcy lawyer and heads Davis Polk’s Liability Management & Special Opportunities practice. His work includes advising distressed companies, creditors, lenders and other strategic parties in Chapter 11 cases, out-of-court restructurings, liability-management transactions and Section 363 sales, according to his Davis Polk profile.
Barr brings a different but complementary perspective. As Davis Polk’s chair and managing partner, he advises companies, boards and executives on complex transactions, crisis response and strategic matters. His experience includes major corporate combinations and other high-stakes transactions, making him a natural adviser on the governance, merger and partner-retention issues surrounding a law firm under pressure.
Together, the appointments suggest that Weil is examining both immediate stabilization measures and broader structural alternatives. Those may include retaining key partners, managing creditor and lender relationships, revisiting strategic combinations or preparing contingency plans if the firm’s financial and operational position worsens.
Partner departures and failed merger talks
Weil, a New York-based firm with approximately 1,200 lawyers, has long been known for its private equity, mergers and acquisitions, bankruptcy and litigation practices. It’s reported that partner exits accelerated during the summer as rival firms used aggressive compensation packages to recruit established rainmakers.
Among the reported departures were New York dealmaker Michael Aiello and five other M&A partners expected to join Cravath, Swaine & Moore. Other senior lawyers have moved to firms including Simpson Thacher & Bartlett, Paul Weiss and Sullivan & Cromwell, according to reports. Skadden also announced the recruitment of two Weil partners with prior experience at the U.S. Securities and Exchange Commission.
Weil had also held merger discussions with Willkie Farr & Gallagher. Those talks ended without an agreement, according to legal-industry reports. Barr had initially been engaged in connection with the possible merger, and is now working with the Davis Polk team as Weil considers its next steps.
A broader warning for the legal market
The situation highlights how quickly partner mobility can affect even established law firms. A firm’s value is closely tied to the lawyers who control client relationships, originate matters and generate revenue. When several high-producing partners leave together, the effect can extend beyond lost fees to include questions about succession, debt capacity, compensation and the firm’s ability to finance a transition.
It also shows why law firm restructuring advice can require a blend of bankruptcy, corporate, governance and crisis-management expertise. A distressed law firm may need to preserve client service while evaluating lateral moves, office and practice-group economics, lender obligations, partner capital and possible combinations with other firms.
For now, the reported Davis Polk engagement is best understood as an assessment of options rather than evidence of a predetermined outcome. Weil’s next moves, and whether it can stabilize its partnership and client base, will determine whether the episode becomes a restructuring, a renewed combination effort or a broader retrenchment.
This article is based on reporting by authorities and on publicly available Davis Polk lawyer profiles. Weil and Davis Polk had not provided an on-the-record public announcement of the engagement in the sources reviewed.
