In today’s volatile economic and regulatory environment, corporate restructurings are no longer reserved for moments of crisis—they are strategic tools for managing risk, protecting value, and navigating change. In this conversation, Adrienne Walker, a restructuring partner at Foley & Lardner, shares her perspective on how distressed organizations can engage earlier, communicate more clearly, and build lasting solutions—especially in regulated sectors like healthcare and education.
CCBJ: As restructuring practices and regulatory oversight continue to evolve, what developments are most likely to reshape the landscape for companies in financial distress?
Adrienne Walker: Policy volatility is driving today’s uncertainty. Tariff policy and lingering supply chain disruption from the COVID era continue to weigh heavily on manufacturers and other capital-intensive businesses. Looking ahead, efforts to extend the Tax Cuts and Jobs Act without offsetting revenue could result in deep Medicaid cuts—an immediate concern for hospitals, skilled nursing facilities, and others operating on thin margins.
There’s also some concern around the future of the municipal bond tax exemption. If it disappears, the impact would be felt across sectors like healthcare, education, and infrastructure. Many of these businesses rely on tax-advantaged financing to fund essential projects, and any shift in that framework could accelerate distress.
At what stage would you advise executives to consider a restructuring?
Ideally, before a crisis hits. When indicators like shrinking liquidity, tightening covenants, regulatory trouble, or unexpected litigation begin to surface, that’s the time to engage. Early action creates room to negotiate with creditors, divest non-core assets, or restructure operations strategically. If companies wait until liquidity is gone, they lose leverage—and options narrow quickly.
Within highly regulated industries such as healthcare and education, what strategies best balance the demands of creditors, regulators, and the courts during complex restructurings?
Start with a clear and credible exit strategy. From day one, you need to know what success looks like—and communicate that vision consistently.
To do that well, I suggest you:
- Understand the leverage each stakeholder holds—whether they’re secured lenders, trade creditors, regulators, or labor.
- Pressure-test your plan. Every operational decision—cutting staff, scaling back services—has downstream impacts, especially in regulated sectors.
- Stay flexible. Things will change. But any shift in direction should be intentional and well-explained.
What distinguishes attorneys who consistently build consensus among diverse stakeholders in high-stakes reorganizations?
Deep listening. Successful restructuring lawyers are curious by nature and strategic by training. They pick up on what’s said—and what isn’t—and use that insight to identify common ground.
When consensus can’t be reached, they’re not afraid to narrow the dispute and ask the court for targeted rulings. That process often builds the momentum needed to get the rest of the deal done.
During sensitive restructuring processes, what fundamental principles enable attorneys to sustain trust, clarity, and effective communication with clients?
Consistency and candor. Stakeholders may not always agree with your position, but if you’re clear and principled, they’ll respect it. Transparency is essential. When your clients and their counterparts know you’ll stand by what you say—both in court and at the negotiating table—you earn trust.
You recently joined Foley & Lardner as a partner within their restructuring group. What factors informed that move?
For my clients—especially those in healthcare, education, and other highly regulated sectors—complex restructurings require more than just insolvency expertise. They demand regulatory insight, transactional support, and the ability to pivot fast. Foley has that depth and agility. The firm’s culture of advocacy, training, and service also really resonated with me. It’s a place where I can practice at the highest level—and where values are lived, not just stated.
Published April 18, 2025.
