The world of restructuring law includes some of the most tense and high-stakes corporate matters, requiring its practitioners to navigate complex, distressed situations and provide tailored solutions vital to securing companies’ futures. The work can often feel like triage, a reality that’s not lost on Alice Eaton.
“We are emergency room doctors to distressed companies,” said Eaton, Deputy Head of the Capital Solutions & Restructuring Group at Paul, Weiss. “It’s fast-paced. It requires creativity and problem-solving.”
One of the Lawdragon 500 Leading Global Bankruptcy and Restructuring Lawyers, Eaton has been a problem-solver for many clients facing corporate reorganization and bankruptcy matters, specializing in postpetition financings, exit financings and specialized finance structures. Her practice is evenly split between company-side and creditor-side matters, giving her a comprehensive perspective on the challenges and opportunities both sides face. In addition, her role as Deputy Head of the Capital Solutions & Restructuring Group allows her to work closely with the group’s co-heads to help set goals and objectives, which include working on the most complex and high-profile restructuring matters, maintaining the firm’s high standards as a go-to advisor for major restructurings and recruiting top associates practicing in the space.
Eaton’s recent company-side matters include advising iRobot on its prepackaged Chapter 11 restructuring; Rite Aid, LLC, on its Chapter 11 reorganization; and Revlon and certain subsidiaries in their Chapter 11 cases and an out-of-court exchange offer. Her recent creditor-side matters include advising an ad hoc group of secured and unsecured creditors of Bausch Health; crossholders in the Chapter 11 restructuring of Endo Pharmaceuticals; an ad hoc group of crossholders of Talen Energy Supply in the company’s Chapter 11 cases.
Eaton recently sat down with Lawdragon to discuss her career and practice.
Lawdragon: How is the recent rise in liability management transactions outside of the Chapter 11 court process impacting your practice?
Alice Eaton: The LME cases tend to be difficult once they get to Chapter 11, because all the parties are fatigued due to ongoing liability management transaction negotiations. There’s a lot of history among the parties and a lot of disappointment among the creditors, because the liability management transaction did not result in a sufficient opportunity to restructure the business. Moreover, capital structures have often become complex as a result of liability management transactions, and the businesses subject to these restructurings are often relatively liquidity-constrained and operationally constrained. There’s less value to go around, in part because the parties have already allocated certain value amongst themselves in the liability management transactions. So the Chapter 11 cases we’re seeing are just more challenging.
LD: What other trends are you seeing in bankruptcy and restructuring?
AE: There’s also a trend toward out-of-court transactions, because the costs and publicity associated with the Chapter 11 process can often be prohibitive. That’s been the trend for the past couple of years and will continue.
LD: You’ve had the chance to represent both companies and creditors across the several types of restructuring transactions you mentioned. How do you think working on both sides has benefitted your career?
AE: It makes me a better company-side lawyer because I understand how creditors are thinking, and it definitely makes me a better creditor lawyer because I can speak with conviction and credibility about how a board or company thinks about a transaction. That opportunity to balance both aspects of my practice is unique and valuable.
Our strengths lie with our ability to work across all aspects of restructuring matters, at the highest level, in any type of market conditions.
LD: Looking back on your career, is there a matter that stands out?
AE: On the company side, Revlon filing for bankruptcy in 2022 stands out. Revlon entered the Covid-19 pandemic having just done one of the first liability management transactions ever and was about to refinance the debt, but because of supply chain disruptions and growing liquidity needs in 2022, it became clear that the company’s debt would need to be addressed through Chapter 11. Revlon is a longtime Paul, Weiss client, and I had worked with the company over many years on different transactions, but this was really the moment when it became clear this company was going to have to file for bankruptcy.
Under very extreme circumstances, we got the company into and out of bankruptcy in under a year, one of the quickest free fall turnarounds ever. In spite of the company having to file for bankruptcy without a deal with its creditors, we managed to work closely with the creditors to achieve consensus and guide the company to emergence. Many companies and creditors complain about bankruptcy being a lengthy, expensive and value-destructive process, but we were very proud that we were able to deliver Revlon out of bankruptcy with great speed and poised to continue its operational turnaround, to the benefit of the company and all its stakeholders.
LD: What do you appreciate about Paul, Weiss as a platform for your work?
AE: Paul, Weiss is a law firm capable of great transformation, while still maintaining the highest quality and attracting the best clients. Our department, in particular, is emblematic of that ethos. We are market leaders in all aspects of restructuring because we have amazing talent at all levels of seniority, and everyone in the group is dedicated to their careers, their clients and tackling the difficult challenges presented in restructuring. Our strengths lie with our ability to work across all aspects of restructuring matters, at the highest level, in any type of market conditions.
LD: Your career direction has involved taking on leadership roles, as you currently serve as Deputy Head of the Capital Solutions & Restructuring Group. How would you describe your leadership style?
AE: I have only been deputy head for a couple of years, so my leadership style is developing. For the most part, I try to lead by example and incorporate the work ethic and dedication of the co-heads of the group. Together we are focused on maintaining our high standards of quality, working tirelessly to achieve great outcomes for our clients, attracting the smartest associates to our practice and helping them develop their careers.
LD: How have you personally contributed to the practice’s goals around career development?
AE: I stand on the shoulders of many wonderful mentors, and I try to be an active mentor now. I’m hopeful that the associates with whom I interact with daily are able to get the benefit of what I’ve learned, so they don’t have to make the same mistakes I made, as well as the benefit of whatever career guidance I can impart. I enjoy being their champion and their advocate within the firm.
LD: What career guidance would you give to young restructuring lawyers now?
AE: Restructuring is an incredibly rewarding practice. But we are responding to urgent problems, and the pace, the dedication required, the timing, and the disruptions on weekends and to personal events can be hard to manage for a young lawyer. Your career is a long game, so you need to think big picture and long term. Until you become better versed in the practice, it can feel challenging to balance your personal life with your professional life. Be patient; it takes time, but you figure out what’s important in life, what’s important at work and, over the course of your career, it does get easier.
Together we are focused on maintaining our high standards of quality, working tirelessly to achieve great outcomes for our clients, attracting the smartest associates to our practice and helping them develop their careers.
LD: Your first exposure to restructuring actually occurred before law school. Can you share how your family helped shaped your career path?
AE: My dad was a restructuring banker, so I grew up with knowledge and understanding of the field. I saw how much he enjoyed his career and, since I like to think I’m very similar to my dad, I thought that if he enjoyed it, I’d enjoy it too. Some might say that lacked creativity on my part, but I learned very quickly that I found my professional home in the restructuring world. I appreciate the collaboration, the teamwork, the problem solving, the creativity and the pace.
I’m not an adrenaline junkie, but I do like the adrenaline rush of being able to navigate the complex litigations and corporate transactions we find in restructuring. That’s what I’ve always enjoyed and continue to enjoy.
LD: What do you enjoy in your time outside the office?
AE: I am blessed that I come from a very large extended family, and I try to spend my spare time catching up with them and with close friends. I also am a perpetual beginner golfer, and I’d like to at some point improve, but that might have to wait until retirement. More than anything, though, I enjoy spending time with my son, my husband and my extended family.
LD: I understand that one of your favorite movies is a legal comedy. Can you share what it is?
AE: I have rewatched "My Cousin Vinny" no fewer than a thousand times and could probably quote most of it with badly done accents. I find it pure joy to watch the comedy, and I’ve been told by my litigator friends that the cross-examinations scenes are on point. Anytime it’s on, it’s a great escape.
