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"Russell McVeagh is recognised as a leading legal firm and their works reflect that", says a client. The team has always had a great reputation and "their service and responsiveness are second to none", according to a client

Observers were particularly worried for the capital markets team with the high profile departures of Garth Sinclair and Ross Pennington, who both left the partnership in late 2010. Both are highly regarded and commentators are waiting to see how the firm reacts.

Despite these setbacks, the firm had a busy year, taking the lead role in structuring New Zealand and Australia's first ever covered bond programme along with initial issues by Bank of New Zealand (BNZ) of NZ$425 million ($348 million) of covered bonds and by BNZ-IF, of €1 billion ($1.4 billion) of covered bonds.

New Zealand has no legislative framework for covered bonds so the transactions had to be structured on contractual principles, making use of securitisation techniques. The Reserve Bank of New Zealand has proposed that covered bonds either be standardised on the structured model developed for BNZ or that a legislative framework be introduced to address insolvency and statutory management issues.

Another notable highlight saw the team advise Westfield on a group restructure involving the distribution of A$7.3 billion ($7.4 billion) of capital to security-holders, along with an A$2 billion offer of stapled units in the new Westfield Retail Trust to the public.

The deal included a A$1.5 billion offer of stapled units to security-holders and involved a major equity raising and a significant group restructuring, both with complex cross-border legal issues. The group restructure involved the transfer of 50% of the Australian and New Zealand shopping centre assets of the Westfield Group to the new Westfield Retail Trust.

"We have worked with Russell McVeagh when they have been representing our clients as issuers of complex financial structures, I find that they are able to break down and simplify all the complex matters."

Russell McVeagh's banking and finance practice "is New Zealand's market leader", according to one rival partner. Advising on the most complex financing transactions and challenging legal issues the team continues to be at the forefront of all new developments in this area.

The departure of Ross Pennington in late 2010 raised some questions but the team is still led by the "irreplaceable Geoff Busch" who is "a very good practitioner", according to one peer.

Not to be overlooked is Guy Lethbridge, a very highly regarded individual who is described by one peer as: "Very knowledgeable and all round great operator."

The team acted for a banking syndicate on the financing of the acquisition an by Infratil/Guardians of New Zealand Superannuation consortium of Royal Dutch Shell's downstream New Zealand assets. The NZ$600 million ($490 million) acquisition financing was New Zealand's largest and most significant in 2010. It involved complex inter-creditor arrangements between the bank syndicate and offshore subsidiaries of Royal Dutch Shell as ongoing suppliers of hydrocarbons to be imported to the target group.

Another notable highlight saw the firm act again for a banking syndicate, this time in the NZ$287 million expanded financing of the Britomart precinct in Auckland's central business district. The transaction involved the new construction financing for a car park and a large refinancing, undertaken by two separate banking syndicates under a shared security structure with a highly complex underlying leasehold structure.

"Russell McVeagh and the partners I deal with are amongst the very best I have worked with," says one client. "Top notch people with a very commercial approach and ability to deliver practical application," adds the client.

The team suffered the departures of high profile partners Garth Sinclair and Matthew Mallet in late 2010. Having been at the firm for over 20 years Sinclair will be a big loss; he moves to boutique firm Webb Henderson. Mallet made the move to Morrison Daly in September 2010.

The firm continues to act on a number of high profile mandates and peers highlighted partners Pip Greenwood, "one of the best in New Zealand" and David Hoare as "a top notch corporate practitioner". One such mandate saw the team act on the sale of Tegel, New Zealand's market-leading poultry producer, in a transaction that involved negotiations with a number of different vendors and stakeholders in multiple jurisdictions. The transaction is one of the largest private equity transactions ever in the New Zealand market and also one of the largest LBOs in the Trans-Tasmanian market (spanning both Australia and New Zealand) in 2010, valued at between NZ$550 million ($447 million) and NZ$1 billion.

The firm's ability to complete complex and difficult transactions is welcomed by clients: "They are in the top end of town. I feel that they are highly talented," says one.

Another highlight for the firm last year was acting for Meridian, New Zealand's largest electricity generator, on the restructuring of the government's commercial interests in the electricity industry. Meridian was the central participant in all aspects of the restructure. The transaction involved special legislation to authorise the transfer of Meridian's power stations, canals, dams and storage lakes, which Meridian intended to sell.

Last year Russell McVeagh acted for the certain banks, as senior lenders in relation to the Yellow Pages Group (YPG) restructuring. The deal was the largest restructure in New Zealand for 2010 in terms of the dollar value of the business and its liabilities. It involved a large syndicated group of lenders.

The team is described as "exceptionally good generally and specifically", by one client. "A firm with great credentials, resource and capabilities"