IFLR 1000
The Guide to the World's Leading Financial Law Firms

	Bell Gully Chapman Tripp
	Buddle Findlay Mayne Wetherell Minter Ellison Rudd Watts Russell McVeagh Simpson Grierson
	DLA Phillips Fox Harmos Horton Lusk
	Kensington Swan

While the banking market in New Zealand was looking to improve in 2011, the devastation caused by two large earthquakes in Christchurch has set projections back. A leading partner comments: "I believe the full economic impact of the two earthquakes is yet to be determined. Early estimates suggest it could cost the economy billions and billions of dollars." The result has been a loss of confidence in an already bumpy economic environment.

In general, the banking and finance sector in New Zealand reflected international developments. Tighter margins and less liquidity in the wholesale funding markets has had a natural flow-on effect for New Zealand banks, while other financiers with their generally riskier investments and weaker security positions experience increased pressure and tighter access to funds from both banks and investors.

Restructuring remains a key area of work for firms, with some of the smaller financiers being taken over by those with stronger balance sheets and a couple of significant players failing to survive the economic storm.

The past 12 months saw further non-bank lenders holding still while some investors are making substantial changes to their investments in the hope of a small recovery. "Companies with increased write-downs and smaller than expected recovery rates have been considering whether initial moratorium plans were achievable," comments a highly regarded partner.

Bell Gully's "highly regarded banking practice" continues to actively work with the most significant and innovative transactions in New Zealand. Clients comment that the team has "very good knowledge and understanding" and "is always available, with clear suggestions on pros and cons options".... [more]

Bell Gully's "highly regarded banking practice" continues to actively work with the most significant and innovative transactions in New Zealand. Clients comment that the team has "very good knowledge and understanding" and "is always available, with clear suggestions on pros and cons options".

Partner and leading lawyer David McPherson remains a stalwart in the department, which also counts on Hugh Kettle and Murray King, who as a pair occupy “the heart and soul of the team" says one peer. Clients have commented that they are both "very good, responsive and commercial, and their ability to advise on complex issues is outstanding". Another notable practitioner in the team is Rachel Paris, regarded by a rival law firm partner as "an up and coming future superstar".

The banking team is advising the Department of Corrections on New Zealand's first central government public-private partnership (PPP), the Wiri prison project in Southern Auckland. The project is still in the procurement phase and will require the successful bidder to design, build, finance, maintain and operate the facility. The banking team is also advising New Zealand Treasury and its National Infrastructure Unit on the development of a model contract for PPP procurement in New Zealand.

Another highlight for the team was advising SKYCITY Entertainment Group on its NZ$400 million ($344 million) syndicated refinancing. The Group, an entertainment and gaming business, sought to enhance its debt profile by negotiating new and extended flexible funding facilities on attractive terms. This transaction significantly enhanced SKYCITY's debt profile.

[hide]

One rival says that Chapman Tripp "deserves their top tier status", while a client adds: "We have used them for 20 years for their excellent banking work, technical skill and very current market knowledge."The past year saw the departure of Michelle Corse - Scott to Westpac Bank, however the firm immediately found a high quality replacement in partner Ross Pennington from Russell McVeagh.... [more]

One rival says that Chapman Tripp "deserves their top tier status", while a client adds: "We have used them for 20 years for their excellent banking work, technical skill and very current market knowledge."

The past year saw the departure of Michelle Corse - Scott to Westpac Bank, however the firm immediately found a high quality replacement in partner Ross Pennington from Russell McVeagh. "Ross is a leading capital markets, banking and structured finance lawyer and he'll completely transform the Chapman Tripp team", says a rival partner.

A notable highlight for the team was advising advising Bank of New Zealand, Commonwealth Bank of Australia and Bank of Tokyo Mitsubishi on unsecured bilateral facilities totalling NZ$500 million ($419 million) to Genesis Energy. This complex transaction included bilateral facilities. A hybrid deal model was also created between a bilateral and a syndicated lending structure.

The team ended the past year with advising Australia and New Zealand Banking Group (ANZ) on its refinancing of dairy firm Synlait Milk, following an equity investment from Shanghai-based Bright Dairy, one of China's largest dairy companies.This investment was settled following approval from the Chinese Government and fulfilment of all regulatory conditions. This NZ$162 valued transaction included a significant proportion of the finance provided by ANZ to fund the construction of a second milk processing plant.

[hide]

"One of Buddle Findlay's strengths is its efficient project management skills and ability to take over a legal process and manage the client and its lawyers", says a satisfied client. "In addition, they have very good knowledge, which means that their expertise is applied as effectively as possible, which I have not always seen from other firms in different contexts.... [more]

"One of Buddle Findlay's strengths is its efficient project management skills and ability to take over a legal process and manage the client and its lawyers", says a satisfied client. "In addition, they have very good knowledge, which means that their expertise is applied as effectively as possible, which I have not always seen from other firms in different contexts."

Another long-standing client with the firm comments: "Buddle Findlay acts for nearly all areas of our business. [It] has the full range of technical expertise that we require."

The departure of Jason Boyes to take up a general counsel position with Infratil last year was countered by the firm's hire of Simon Jensen as a special counsel. The team still boasts, Gene Turner who one client describes as "an exceptionally able lawyer, who uses his deep knowledge to advise us across a range of banking and corporate/commercial issues". The same client continues: "He has also seamlessly taken over the main relationship role and become our trusted adviser. Gene is not afraid to tell us where we need to improve and is a well respected name in the market."

A key highlight last year saw the team advise Bank of India on becoming a registered bank in New Zealand. Registered bank status is difficult to achieve in New Zealand with the Reserve Bank of New Zealand imposing high thresholds for compliance. Bank of India is the only bank to have been registered in New Zealand in the last year and joins only 19 others in the country.

Another highlight was advising the security agent for the senior lenders and the trustee of the owners in relation to the Yellow Pages Group's debt for equity restructuring. The significant debt for equity restructure involved a total debt write off of NZ$1.05 billion ($811.5 million), with about 40 bank lenders, financial institutions and funds involved.

[hide]

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.... [more]

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.

[hide]

The banking team at Minter Ellison remains in tier two this year after numerous strong recommendations from clients: "Minter Ellison demonstrates excellent knowledge, expertise and innovation in the areas on which we have sought their advice", says a client. "[It] has an experienced team of partners and solicitors who demonstrate strong technical expertise by providing concise, reliable, direct and commercial advice," says another.... [more]

The banking team at Minter Ellison remains in tier two this year after numerous strong recommendations from clients: "Minter Ellison demonstrates excellent knowledge, expertise and innovation in the areas on which we have sought their advice", says a client. "[It] has an experienced team of partners and solicitors who demonstrate strong technical expertise by providing concise, reliable, direct and commercial advice," says another.

Other clients state that "the team is well versed in this sector" and "they are at least equal to other top tier firms in most respects and ahead of them in many".

Partner Kate Lane is highlighted specifically by peers as "an outstanding legal adviser and an accomplished and thorough lawyer whose high quality work inspires confidence in her legal advice. She is calm under pressure and a pleasure to work with".

A stand out mandate last year saw the team advise on the treasury guarantee scheme of South Canterbury Finance (SCF). The NZ$1.8 billion transaction was significant because it involved the Crown changing the basis on which it had previously provided support to investors under the deposit guarantee scheme. The transaction involved the Crown agreeing to provide a first ranking second loan to the receivers of SCF to refinance prior ranking secured parties and agreeing to make set up guarantees for the total indebtedness rather than for individual investors.

Cumulatively, these measures ensured the orderly receivership of New Zealand's biggest finance company, the effective distribution of guaranteed payments, the effective subrogation by the Crown of the first ranking claim to SCF's assets and a material saving for the Crown of post-acceleration interest.

The market was also impressed with partner Michael Langdon: "He has assisted primarily in insolvency and restructuring and is a dedicated and pragmatic lawyer with excellent technical skills and a strong commercial approach to his legal advice," says one client.

[hide]

Mayne Wetherell is "a top banking and finance firm, one of the best in New Zealand", according to one client. The team's "excellent banking and finance skills" are praised by clients as "the very highest standard in the practice.... [more]

Mayne Wetherell is "a top banking and finance firm, one of the best in New Zealand", according to one client. The team's "excellent banking and finance skills" are praised by clients as "the very highest standard in the practice."

The firm has two clear banking stars in Will Tipping, "an up and coming pillar to the New Zealand market and certainly a great lawyer", according to one peer, and Dave Wetherell, who is described as "a great practitioner and certainly a worthy work horse", by another.

The team acted for Bank of New Zealand and Westpac in respect to the NZ$200 million ($163 million) standby facility for Combined Building Society. This formed part of the merger of Marac Finance with Southern Cross Building Society and Canterbury Building Society.

Another highlight saw the team act for 2degrees, the new mobile telecommunications company in New Zealand, in relation to project financing to fund the expansion of its mobile network. The successful financing will allow 2degrees, which has quickly developed market share in the New Zealand mobile telecommunications market, mount a strong challenge to the two large incumbents.

[hide]

Simpson Grierson's banking practice is led by partner Andrew Harkness, recognised as "a leading banking and finance lawyer" by clients, one of which describes him as "an expert covering the full range of transactional banking, with a particular focus on leveraged finance, corporate finance, restructurings and other complex lending transactions". Harkness is also noted for "combining outstanding technical expertise with a rare degree of market insight".... [more]

Simpson Grierson's banking practice is led by partner Andrew Harkness, recognised as "a leading banking and finance lawyer" by clients, one of which describes him as "an expert covering the full range of transactional banking, with a particular focus on leveraged finance, corporate finance, restructurings and other complex lending transactions". Harkness is also noted for "combining outstanding technical expertise with a rare degree of market insight".

One of the largest and most high-profile deals worked on by the team last year was in the public sector. Harkness led a team acting on the merging through bespoke legislation of eight separate security trust and debenture trust deeds into one replacement debenture trust deed for Auckland Council.

This was the first time in New Zealand where legislation was used to merge security trust and debenture trust deeds and the transaction formed part of a wider merger of eight local authorities in Auckland into a so-called 'supercouncil'. In addition the firm also advised the council on New Zealand's largest ever syndicated loan facility valued at NZ$600 million ($467 million).

Another notable highlight was the reorganising of a global syndicated loan facility to Merlin Entertainments Group Luxembourg 2 to fund its A$157 million ($160 million) acquisition of several visitor attractions in Australia and New Zealand. [hide]

DLA Phillips Fox is "quick to provide knowledgeable advices", says one client. After the merging of DLA Piper and DLA Phillips Fox in Australia in March 2011, the New Zealnd branch has gone it alone and still opeartes under its old moniker.... [more]

DLA Phillips Fox is "quick to provide knowledgeable advices", says one client. After the merging of DLA Piper and DLA Phillips Fox in Australia in March 2011, the New Zealnd branch has gone it alone and still opeartes under its old moniker. With a client list that includes JPMorgan, Bank of America Merrill Lynch and Commonwealth Bank of Australia (CBA) the team has had another busy year.

Terence Ng's arrival will "add more property finance expertise" which will strengthen the firm's ability to undertake property finance transactions.

The past year saw the team advising Foodstuffs Auckland Group in securing a grant by Australia and New Zealand Banking Group, National Bank, Bank of New Zealand, Westpac and CBA in a NZ$300 million ($244.8 million) syndicated multi option facility to Foodstuffs Auckland.

The team was also able to secure a NZ$100 million working capital facility to Foodstuffs Finance (Auckland) Limited from CBA.

[hide]

Clients have commented the Kensington Swan banking practice is "excellent, thorough and generally ahead of most other firms in analysing the impact of new legislation." Another client went as far as to say that the experience was: "Probably the best interaction I have had with any law firm in my career and definitely the best in New Zealand.... [more]

Clients have commented the Kensington Swan banking practice is "excellent, thorough and generally ahead of most other firms in analysing the impact of new legislation."

Another client went as far as to say that the experience was: "Probably the best interaction I have had with any law firm in my career and definitely the best in New Zealand."

The team acted as legal adviser to the trustee, Perpetual Trust, on the establishment of the NZ Funds KiwiSaver Scheme. The NZ Funds KiwiSaver Scheme was established in a market that is highly competitive and widely expected to undergo significant product and provider consolidation and at a time when very few new products were being developed or brought to market.

[hide]