Edelman PR responds to economic slowdown with restructuringpractice

NEW YORK: Edelman PR Worldwide's financial practice has responded

to the global economy's slowdown by launching a restructuring practice

to assist distressed companies.



The practice currently has three clients, the names of which it would

not disclose because each is in the process of filing for Chapter 11

bankruptcy.



Edelman expects an increasing number of financially troubled

corporations to restructure, in both formal bankruptcies and

out-of-court settlements.



Hollis Rafkin-Sax, EVP and general manager of Edelman Financial

Worldwide, will head the new practice. She said it is a myth of the

financial world that filing for Chapter 11 signals a company's

demise.



'In truth, the vast majority of companies that file for bankruptcy

protection do so in order to reorganize their businesses and emerge

stronger and healthier as ongoing concerns,' said Rafkin-Sax. 'The

ability to communicate swiftly and effectively with key audiences is one

of the determining factors in the ultimate success or failure of a

corporate restructuring.'



The practice will deal not only in crisis management and employee

communications, but also in bankruptcy and securities law and the

capital markets, the volatility of which leads many companies to

restructure.



Rafkin-Sax wouldn't give figures for expected revenue for the new

practice, but said 10 people will work on restructurings, primarily out

of Edelman's New York, Los Angeles, Hong Kong and London offices.



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