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

In 2009, former Honduran President Manuel Zelaya, standing in a Costa Rican airport and still in his pyjamas, protested to the international media, "I am the President of Honduras." The exasperated state figure had been dragged from his bed by the military and put on a plane out of the country. Fast forward to the last few days of May 2011, when Zelaya, back in Tegucigalpa after two years of exile, told his supporters, "We arrive full of optimism and hope to search for an exit to this crisis." Like Zelaya, many in the legal community are hopeful that the deleterious effects of the political crisis are over.

Although it is difficult to predict the full effect of Zelaya's return, for the moment, optimism has returned to Honduras. "In the past year, we resolved the political situation," says one lawyer. Market feedback suggests that the tumultuous political situation has been left behind and a much brighter future lies ahead for the Honduran economy. "People started to believe in the government and that's been positive," says one attorney.

Regaining popular support for the government has been an important development in a country which needs a stable hand to solve some challenging problems. The 2009 coup d'etat was met with fierce international criticism and ultimately led the Organisation of American States (OAS) to revoke Honduras' membership. Immediately after Zelaya's removal, the Honduran economy plummeted as foreign investment fled and real estate development stopped, due to the disastrous state of political affairs, both internationally and domestically.

However, with Zelaya's return, the OAS has since reinstated Honduras as a member state. And over the past year, President Porfirio Lobo's government has aggressively pursued an economic agenda seeking to regain investor confidence while reaching out to mend strained international relations. One partner claims that the government has put in "a lot of efforts to reclaim the name, polish the image, and to make Honduras an attractive destination for investment, for foreign capital."

Hoping to attract investors, the government launched "Honduras is Open for Business." Held in San Pedro Sula, one attorney describes it as a "big event" that detailed infrastructure opportunities and presented new investment laws. So far, to compliment the goals of the conference, lawyers cite the importance of the newly-passed Law for the Promotion of Public-Private Partnerships (PPP), which in the words of one, could "propel a platform of investment".

Despite the government's progressive business agenda, one partner foresaw problems in the regulatory infrastructure for banks, a problem that may choke liquidity. "Banking is not necessarily moving in this direction," says one attorney in comparison to the government's business agenda. "It used to be the most active, flexible sector in Honduras." He cites a slew of new regulations aimed at consumer protection that burdened the banking sector. "They have gone overboard, as far as regulations."

Known as a regional leader with a strong Honduran presence, Arias & Muñoz took a hit last year with the departure of Dennis Matamoros Batson. The financial and corporate specialist left to form his own firm and many in the market wonder how his exit will affect Arias. With Batson leaving, one competitor notes that Arias & Muñoz "has a challenging year ahead of them" and "it will likely make them reshuffle".

Nevertheless, the talented Evangelina Lardizabal is identified by peers and clients as potentially being able to maintain the firm's elevated status. "She's very capable, efficient," says one practitioner. Clients have similar observations. "She's good, very thorough and responsive," says a client, adding: "she knew all the issues" and "is very connected in the country." Lardizabal led the Honduran office as it advised Grupo G de Centroamerica, a subsidiary of Albavisión Group, on purchasing a local television company based in San Pedro Sula. "In comparison to a lot of firms, Arias & Muñoz stands out," says another client active in the Central American market.

The firm's well-established regional network continues to generate business for the local office as well. Five of the firm's six offices, including the Honduran branch, helped Grupo Aval acquire BAC-Credomatic from financial entities of GE. The $1.9 billion stock purchase agreement will allow the Colombian financial giant to expand its reach further into Central American markets.

Though Consortium has offices throughout Central America, its Honduran operation is considered as being amongst its best. "Their members in Honduras are all extraordinary lawyers, and they are growing – with nice new offices," says one partner. With a roster of prosperous clients in multiple industries, including Citibank, Shell, and Warner Brothers Distributing, the firm has the experience to handle the needs of a far-ranging corporate clientele.

The firm has been able to keep atop energy developments, according to peers. Last year, José Miguel Álvarez advised Energía Eólica de Honduras (EEHSA) as it closed a $250 million financing deal for a new wind farm in Honduras.

In March, the firm also helped Puma Energy close an acquisition of Exxon Mobil's Central American retail and distribution arm. Through the transaction, Puma Energy acquired business in Belize, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Consortium's regional network was a well-utilised asset for the multi-national deal. The Honduran office coordinated the firm's legal teams in Guatemala and El Salvador.

Competitors describe Lopez Rodenzo & Asociados as a "unique boutique firm" led by a cadre of talented partners held in high esteem by the Honduran legal and financial community. "Rene Lopez Rodenzo is a gentleman, a pleasure to work with," says one attorney while noting that "the bankers have a lot of respect for him". Recently, the firm added Fernando Fiallos Gutiérrez, a well-known corporate lawyer from the firm Gutiérrez Falla & Asociados.

Despite being smaller than some of its competitors, practitioners note that the firm is very visible in key financial industries, a trend buoyed by their international banking clientele. Clients have included well-known financial entities like Citibank, the International Finance Corporation (IFC), Banco Cuscatlán and Banco Agrícola.

The firm's performance has earned López Rodenzo market praise, as well. "It is always a pleasure being a counterparty," says one peer-a sentiment seconded by another who describes the firm as "knowledgeable" and "very ethical".

"A good up-and-coming firm" is how one competitor describes the Honduran branch of Aguilar Castillo Love, a regional firm with offices in five other Central American countries. "They're a big firm, they're growing," says another, while the work of Juan José Alcerro-Milla and Enrique Rodríguez-Burchard drew praise from peers.

Enrique Rodríguez-Burchard led a team advising Sociedad Eléctrica Mesoamericana (SEMSA) in an ongoing transaction regarding the Mezapa Hydroelectric Project. The deal is representative of a Honduran trend where multiple project financing deals have been initiated in the renewable energy sector. Moreover, the firm started to assist the recently initiated Cuaca Hydroelectric Project, a 15MW hydroelectric facility, and, in a separate matter, started advising the Roatan Electric Company on a new wind farm.

In addition to the burgeoning project finance work, the firm helped with multiple real estate transactions last year. Enrique Rodríguez-Burchard and his team assisted with a $15 million housing project in Tegucigalpa, an investment that will provide housing for more than a hundred families. Additionally, the firm was involved with a luxury condominium development in downtown Tegucigalpa.

"Their services are premium" and "the results are superb" is how one client describes his dealings with Gutiérrez Falla & Asociados, adding that the firm has a lot of expertise. Well known in the Honduran market, the firm garners equal praise from its competitors. "What stands out most is their high ethical values," says one peer, who also says that the firm is "highly specialised and provides great services."

Despite losing one of their prominent lawyers, Fernando José Fiallos Gutiérrez, to López Rodezno & Asociados, clients remain satisfied with the firm's quick response time. They cite Mauricio Villeda Bermúdez as one of the firm's leading lawyers. "He is very effective, handles whatever needs we have very quickly and professional," says one client.

Early this year, Bufete Rosa y Asociados helped client Banco ProCredit Honduras with the regulatory approval of a $10 million bond issuance, in addition to providing legal advice in a separate matter for the bank's capital restructuring plans. Leonidas Rosa Bautista also helped assist with the renegotiation of a power purchase agreement for a 150MW power plant, valued at roughly $200 million.

The younger Bautista has earned the respect of peers. "Junior is very active, and very smart," says one partner. "With [Leonidas Rosa Bautista] leading, they are moving in the right direction. It is more dynamic."

"Vanessa Velasquez is a rising star," says one competitor about the Tegucigalpa-based partner at Casco-Fortin Cruz & Asociados, a firm traditionally known for its strong IP practice. But stellar client feedback and an active banking practice, largely due to their relationship with HSBC, pushes the firm into the Honduran rankings this year. "The attention from Vanessa was incredible," says one, while another mentions that, "Clearly, Vanessa knew how to get through the procedure."

Last year, the firm handled local regulatory and antitrust issues regarding HSBC's acquisition of Honduran insurance and banking group companies owned by Primer Banco del Istmo. Additionally, the firm provided advice to NACCO Materials Handling Group (NMHG), a truck-lift manufacturer, with the termination of a distribution agreement and dealership relationship with a local dealer.

The regional network of García & Bodán has provided the Honduran office with a string of activity in the financial and corporate practice area. However, the competition notes that the firm's office is a smaller player in the local market.

Despite the size, the firm has participated in some large regional transactions. In addition to supporting GE's sale of Bank of Central America, the Honduran office has provided ongoing assistance to BNP Paribas. Furthermore, the firm assisted E&Co Capital, a clean energy financier, with the preparation and revision of credit authorisations for three renewable energy plants.

One client cites the quick response of the firm and the quality control between the firm's Honduran and Nicaraguan offices. Additionally, he is pleased with partner Vanessa Oqueli de Riera. "She's very good, always on top of it and she does a very good job," he says.

With its main-office in San Pedro Sula, Lexincorp often competes with Central Law notes one competitor. Omar Alexis Claros is known in the market for providing outside counsel for banks located in the city. Claros advised Banco de Occidente, DHL, and Grupo de Hospitales in their corporate operations, among other things, including some litigation. The firm also participated in a massive real estate and construction arbitration, representing Desarrollos Terrestres de Honduras.

Competitors note that the firm Medina Rosenthal & Associates – Central Law is well connected politically. Jesús Humberto Medina Alva's name is well-known across Honduras, and one competitor describes him as "easy to work with". The firm has two offices - one in San Pedro Sula, the manufacturing and economic engine of country, and a smaller office in Tegucigalpa, the capital city.

The firm acted as lead counsel for Banco Continental this year as it obtained $46 million in loans from the Honduran Bank of Production & Housing.