Davis Polk partner and Liability Management & Special Opportunities practice head Brian Resnick discussed the rise of liability management exercises (LMEs) and how firms are building out their practices to meet client demand with the American Lawyer.  

The article highlights that LMEs are becoming increasingly commonplace and that they have rebounded over the past two quarters after falling in Q3 2025. 

However, Brian noted that the league tables don’t tell the full story. “Some of the statistics that show up and down movement of closed transactions mask the fact that we’re always busy working on them, contemplating them, and dealing with them as a strategic option,” he said. “They go through waves in terms of how often they close, but it’s consistently a tremendous focus of our practice.”

“As Creditors Lay Down their Arms, Liability Management Takes Off,” American Lawyer, June 2, 2026 (subscription required) 

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