Top lawyers say that they are expecting a windfall in restructuring and litigation mandates as the global economy continues to be damaged by the ongoing spread of coronavirus.

The virus, officially known as COVID-19, has infected nearly 78,000 people globally, according to the latest statistics from the World Health Organisation. It has also wiped billions of dollars off the global economy by damaging supply chains. The Dow Jones Industrial Average has fallen 6.6% since the start of the week.

Restructuring lawyers say that distressed companies could find themselves falling into financial difficulty driven by the effects of coronavirus, which is affecting supply chains and the sale of goods coming out of China.

One restructuring lawyer said: "The great unknown is that if [the virus] really does continue seriously for the next quarter, it will really start to impact on retail supply, which is long-leaded by nine months."

The lawyer added: "I think that even if [coronavirus] ended tomorrow, there will still be a fallout that will keep the international firms busy. The winners from this will be those with the restructuring and litigation skill set, the losers will be M&A."

Kirkland & Ellis restructuring partner Kon Asimacopoulos said in a post on LinkedIn: "While the GDP impact of the coronavirus was at first only anticipated to impact the Chinese economy, that is now clearly incorrect. The economic tentacles of COVID-19 are reaching far and wide, and it is obvious the longer it takes to contain, the worse it will be."

Litigators also cite a dwindling supply chain coming out of China as increasing the likelihood of businesses invoking force majeure exemptions if they are unable to fulfil contracts.

Litigation specialists Quinn Emanuel Urquhart & Sullivan issued an update to clients last week about the possible impact of coronavirus on litigation, saying that contracts signed prior to the coronavirus outbreak could arguably be covered by the Force Majeure clause. This is because the spread of the virus was outside of the affected party's control and neither of the companies could have foreseen it.

Corporate lawyers have added that they are concerned about a potential slowdown in M&A activity as businesses divert their attentions away from strategic takeover opportunities, instead looking to set straight any problems caused by the virus outbreak.

Law firms have leapt into action to keep abreast of the spread of the virus in key locations such as Mainland China, where firms have issued new guidance to employees about working from home and office closures, and Italy, with firms such as Bird & Bird and Italian firm BonelliErede limiting staff movement following reports of an outbreak in the north of the country.