The following is an excerpt from Practice Perspectives: Vault's Guide to Legal Practice Areas.
Aparna Yenamandra is a restructuring partner in the New York office of Kirkland & Ellis. She advises companies and creditors with investments in distressed companies across a host of industries, including oil and gas, retail, and software. She advises companies in connection with Chapter 11 filings and out-of-court deleveraging solutions and creditors in connection with distressed investments and sale transactions. Aparna received her B.A. in Economics and Political Science from New York University and her J.D. from Villanova University Charles Widger School of Law.
Describe your practice area and what it entails.
Restructuring is a dynamic practice that has both transactional elements and litigation elements. We represent companies, creditors of distressed companies, and funds looking to potentially invest in the distressed space, among others. Our practice is primarily focused on dealmaking and contingency planning to allow companies to either avoid a Chapter 11 altogether or ensure their stay in Chapter 11 is as expeditious and successful as possible.
What types of clients do you represent?
In the United States, our practice is approximately 75-80% company side and 20-25% creditor/investor side. In London, Munich, and Hong Kong, it is the reverse, although our offices in the United States and internationally are fully integrated. We represent the largest and most complex clients and are industry agnostic. During my time at Kirkland, there have been waves of restructurings in various industries: oil and gas, retail, telecom, health, and most recently, crypto. Among other large clients, we have represented Intelsat, J.C. Penney, and Energy Future Holdings.
What types of cases/deals do you work on?
As a group, we largely prepare companies for an expeditious stay in Chapter 11. We work hard to negotiate consensus with as many creditor constituencies as possible, but we are prepared to litigate where necessary. We advise companies on out-of-court deleveraging transactions (e.g., a debt-for-equity swap, an amendment and extension of debt facilities, and/or sale transactions). I’ve spent much of my time with Kirkland on Energy Future Holdings, which was the third-largest operational filing in history. Since then, I have worked on several high-profile matters. Across all these representations, I have touched a range of industries, creditor constituencies, and complex and novel implementation and structuring issues.
How did you choose this practice area?
I liked that restructuring has a mix of litigation and corporate elements and that we can help companies during what is typically a high-stress time for them. The job is equal parts classic IQ and strong EQ, as we are advising tier-one management teams at a pivotal time in the life of their companies. Helping to reorganize a company, stabilize its operations, save jobs, and keep the lights on is hugely satisfying. There are real people with real jobs and livelihoods that depend on a successful restructuring outcome, and that is both humbling and rewarding. I also appreciate that the practice affords an opportunity to both sit at the negotiating table and present arguments in court, providing a very comprehensive experience.
What is a “typical” day like and/or what are some common tasks you perform?
I have been at Kirkland for over 13 years; a typical day for me at this stage is a mix of fielding questions from a senior management team and board members, navigating complex deal or litigation issues both internally with other Kirkland practice groups or with creditor constituencies, and as needed, preparing for court. I am also constantly staying in communication with my co-advisors (within and outside Kirkland) to ensure that we are working together as cohesively as possible.
What training, classes, experience, or skills development would you recommend to someone who wishes to enter your practice area?
While in law school, take a broad base of classes touching on business organizations, evidence, federal tax, accounting, trial advocacy, and legal writing. A Secured Transactions class may also be helpful to understand bankruptcy basics. An opportunity to clerk with a bankruptcy judge could also be beneficial for understanding restructuring from the bench’s perspective. All that said, Kirkland offers a wealth of training sessions on key topics, and nothing beats on-the-job training.
What is unique about your practice area at your firm?
Kirkland’s restructuring practice is a young, highly energized group that has grown quickly and continues to grow but retains a small-group feel. The group leaders are laser-focused on ensuring that young lawyers have opportunities as early as possible, maximizing the group’s diversity and encouraging a healthy work-life balance. Our cases are generally staffed leanly, reducing the layers between senior partners and most-junior associates, providing ample opportunity for more substantive work earlier.
How do you see this practice area evolving in the future?
Ten years ago, this was a relatively small industry somewhat unprepared for the waves of restructurings necessitated by technological advances and, most recently, COVID. As restructurings become more commonplace, I think companies will increasingly see deleveraging as a positive rather than focusing on the negative press of a Chapter 11. This will hopefully facilitate companies approaching restructuring professionals earlier, increasing the likelihood of out-of-court solutions.
What kinds of experiences can summer associates gain in this practice area at your firm?
Shadow, shadow, shadow! The best way to know if you want to be a restructuring lawyer is to see what we do. Summer associates should take advantage of every opportunity to sit in on calls, go to bankruptcy court hearings, go to bankruptcy settlement conferences, and familiarize themselves with what key bankruptcy documents look like. They should also spend time with associates and partners at different levels. For me, it was key to spend time with (and shadow) junior associates, senior associates, income partners, and share partners to see if I could see myself doing their job one day.
How do you see this practice area evolving in the future?
Learn from your peers in other practice groups: The goal is not to become an expert in other practice groups but to be able to spot issues that other specialists should weigh in on. I consider myself a little bit of a tax, debt, capital markets, and litigation expert, to the extent that I know when to raise my hand and ask for help from the experts. Being at the center of it all is an exciting and perfect way to learn what everyone else does.