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PLMJ, the largest law firm in Portugal, has emerged from its internal restructuring stronger than ever, according to competitors.

"PLMJ has evolved very well," says one rival. "The firm lost a team of partners, which was actually good because I now see PLMJ as being more cohesive than I did five years ago."

The capital markets team is led by Jorge de Brito Pereira and Sónia Teixeira da Mota, though Maria Castelos, who heads the firm's banking and finance group, deals with debt capital markets work.

Castelos is well regarded among peers who describe her as a "very devoted and skilful lawyer who sees the whole picture". But the firm has benefitted most from the return of Jorge de Brito Pereira from sabbatical, according to competitors, who consider him the lynch pin of the practice.

"He is very pragmatic," says a client of de Brito Pereira. "Beyond the technical skills and knowledge, he has a very flexible approach to corporate relations - so you get a very pragmatic approach to how corporates should deal with issues. He's not just focused on legal issues and meets a company half way."

The same client also praised the firm for its knowledge of corporate governance and for being "on top of all the latest developments in terms of existing and forthcoming regulation".

Throughout 2008 PLMJ advised Portugal Telecom on corporate governance and compliance matters and won a new client in Zon Multimédia, representing the company in a range of issues.

PLMJ has a "good, solid banking department" according to competitors. And as one of the largest firms in Portugal, it has the structure and resources to cope with a large number of uncomplicated transactions.

The firm also has the benefit of leading lawyer Maria Castelos, who is known for having the skills and experience to make deals run smoothly.

Castelos is regularly mandated to act in the most high profile deals. In December 2008 she, along with António Rocha Alves and André Fernandes Bento, advised the distressed Banco Privado Português on a €450 million credit facility agreement with a syndicate of Portuguese banks.

While most commentators agree that the departure of a group of corporate partners, which included leading lawyer Gabriela Rodrigues Martins in late 2007, adversely affected the firm's M&A practice, the consensus is that PLMJ is still active and remains a tier-one player.

"It's very easy to work with them," says a client. "They are our general law firm for litigation and corporate and commercial matters, and we go to them with our most complex issues. They are competent, professional and very quick to answer any questions or issues we come to them with. It's a very good relationship and working with them we get good results."

Neither did Gabriela Rodrigues Martins' defection leave PLMJ bereft of quality. Leading lawyers Fernando Campos Ferreira and Maria Castelos are picked out by competitors for their corporate expertise, while Martim Morgado is lauded for his intuitive approach.

"He is a fantastic lawyer," says a client of Morgado. "He's young but very, very business oriented and he has something more than professional knowledge - he has good judgement."

The firm has acted on a number of market-leading transactions. In December 2008 PLMJ advised Babcock & Brown on Portuguese aspects of the sale of the company's Enersis wind portfolio to Magnum Capital for €1.2 billion. And in October 2008 the firm advised Santoro in its €180 acquisition of a 10% stake in Banco BPI.

PLMJ's project finance group, a derivative of the firm's banking and finance department, is led by three partners: Fernando Campos Ferreira, Victor Réfega Fernandes and Maria Castelos.

The firm has a broad base of expertise within project finance and Castelos, in particular, is picked out by peers as one of the sector's most competent practitioners. However, the firm is no one-lawyer-show and PLMJ delivers a consistent quality of service despite being one of the biggest players in the jurisdiction, say rivals.

But according to peers the firm lacks the necessary commitment that is demonstrated by the tier one outfits to excel in project finance, instead preferring to concentrate on its corporate practice.

"As a firm PLMJ has different interest centres and I don't think the project finance practice is the most important one," says a partner. "It is more M&A-focused than finance-focused. They have a very good partner, Maria Castelos, but they don't give the practice the importance other firms do."

That said, former managing partner Fernando Campos Ferreira's return to the fray to advise the Aenor Group on financing for the Douro Interior sub-concession (the first and largest of the Portuguese highway authority's road projects) was viewed by peers as a fillip for the practice. Campos Ferreira acted alongside Castelos on the €763 million financing in November 2008 before going on sabbatical at the beginning of 2009.

PLMJ has an active insolvency practice representing banks and corporates, and is well respected by competitors. "I think that they have the best abilities and they have the cases to match this," says one rival. "They are involved in difficult and complicated restructurings."

The firm, led by Tomás Pessanha and Rita Moutinho da Costa, is advising Paxar Iberia, Avery Dennison Rinke and Paxar Itália as creditors seeking €194 million from the insolvent Orgap - Comércio e Serviços Têtxteis.