In the worst financing climate in 75 years, a few companies have managed to emerge from Chapter 11, while others have liquidated. Kirkland client Wellman Inc. is one of the few companies to recently emerge.
"The lesson of ...Wellman is that there is funding for companies that have fanatically focused their operations and taken out costs. And that's a hopeful sign for scores of other companies trying to avoid liquidation.
'I think in this era you need to shrink down to just your very best businesses,' said Jonathan Henes, a Kirkland & Ellis attorney who oversaw the Wellman case. 'You need to just focus on your core strength and make the painful, hard decisions.' "
This article appeared in its entirety in the February 23, 2009 edition of The Wall Street Journal.