These are tough times for Hungary, but with several international firms exiting the country, it's not all bad news for independents. Paul Evans reports

The International Monetary Fund (IMF) bail-out package to Hungary – amounting to over $25bn (£16bn) worth of support and including an injection of capital to shore up Budapest's ailing banks -set out unambiguous criteria for stabilising the country's economy. In response, Hungary's lawyers are gearing up for a wave of restructuring, insolvency and litigation work, as they seek to service the needs of clients who face a future shrouded in uncertainty.

Peter Berethalmi, managing partner at Budapest's biggest independent law firm, Nagy es Trocsanyi, is circumspect about the future and frank when assessing the current state of the market: "There are far fewer transactions, and it's something we need to consider, but this isn't surprising – we simply have to face the same problems as other Hungarian firms."

Nagy es Trocsanyi retains an impressive reputation, with a client roster that includes the Hungarian energy giant Mol. Budapest's other significant independent practice, Szecskay Attorneys at Law, has also distinguished itself in recent years, serving an impressive array of international finance houses.

Financial crisis aside, the year's most dramatic development has been the withdrawal of Linklaters from Hungary (as well as other Central Eastern European markets). The lawyers at the various offices remain, re-branding themselves 'Kinstellar' – an anagram of Linklaters – and will operate across the region as an independent, multi-jurisdictional firm. Kinstellar has retained a 'best friends' relationship with Linklaters. In Budapest, the team will be led by UK-educated project financing expert Csilla Andreko, who formerly headed up Linklaters' Hungarian finance group. The new firm formally launched its Budapest office in early November, with a client reception held at the city's Opera House.

The establishment of Kinstellar follows the decision at the end of last year that Freshfields' office in Budapest would no longer operate under the firm's auspices, spawning instead the local practice Oppenheim. The firm has this year looked to build its strength in the banking and finance sectors by hiring former White & Case lawyer Simon Peter Benedek.

"Both Kinstellar and Oppenheim are new presences in the market, and they're marketing heavily," confirms -Berethalmi.