Perhaps it is just that notable restructuring moves come around so rarely, but Nick Segal's move from Davis Polk & Wardwell to Freshfields Bruckhaus Deringer has got peers talking. After all, he had not been in the US for long and could always have returned to Allen & Overy (A&O).

Conspiracy theories were fuelled by A&O's partnership retention problems of late, and by Davis Polk's curious announcement that it would have been impractical to practise US insolvency law from London, which seems to somewhat contradict the Wall Street firm's European strategy.

Part of it, as with Segal's 2003 switch to Davis Polk, is down to family reasons. Segal, whose wife is American, says he enjoyed his time with the US firm but chose to relocate to London as his son never settled Stateside.

Nevertheless, the decision to join Freshfields was not obvious. OK, it has higher partner profits, but the firm's restructuring team is considerably less high-profile than A&O's and enjoys far less banking mandates than its magic circle rival.

Segal spoke to A&O before joining Freshfields. But it had been three years since he left, and A&O had filled the void left by his departure. The firm has also been trying to move away from bank-sourced roles as the insolvency sector remains quiet and in a more fragmented market, influenced by bondholders and hedge funds, the firm is moving to broaden its offering. Such a shift can be seen on Eurotunnel's fractious restructuring, where A&O is advising the junior debt holders.

The situation at Fleet Street is very different. Unlike A&O, Freshfields has clear scope to bolster its banking links, particularly at a time when the credit cycle is expected to turn. Fresh-fields also needs to address continuity issues, with well-known names like former restructuring head Peter Bloxham nearing retirement and veteran partner Ken Baird on a sabbatical.

Perhaps most importantly, Freshfields has untapped potential in this area. Critics point out that its insolvency division has never obviously gelled with its bluechip client base. Presumably, it is difficult to tell a FTSE 100 chief executive you can offer advice on his company collapsing. This was well illustrated in 2002 when Marconi – a major corporate client of the firm – went to its finance adviser A&O for its hugely lucrative restructuring. And the rest is history. "That kind of thing certainly encourages you to cross-sell more," comments one Freshfields partner with admirable understatement.

Part of the problem for Freshfields is that its City insolvency team has punched below its weight, despite the fact that its nine-partner London team is larger than many of its rivals. In addition, Segal's unique Anglo-US skillset – not to mention the kudos of Davis Polk on his CV – in an increasingly US-influenced sector, combined with his creditor links, should match Freshfields' investment banking connections nicely.

And while these kind of moves happen rarely, recent history shows that where they do – Nicholas Frome at Clifford Chance, Andrew Wilkinson at Cadwalader Wickersham & Taft and John Houghton at Latham & Watkins – the results can be dramatic.