Omar J. Alaniz, partner with Reed Smith.

In another lateral move in the red-hot bankruptcy and restructuring practice, Reed Smith expanded its partner lineup in Texas by hiring Baker Botts partner Omar Alaniz in Dallas.

The COVID-19-related economic downturn has prompted a boom in bankruptcy and restructuring filings and lateral hiring, particularly in Texas, where the energy industry has also been affected by low oil prices.

Alaniz, who will spend part of his time in Houston, said he was eager to join Reed Smith's growing bankruptcy and restructuring practice, after considering offers from three other firms.  He started work Tuesday as a member of the firm's financial industry group in Dallas.

He said the bankruptcy practice is on the rise in Dallas, and it's been strong in Houston for a while, he said.

The bankruptcy practice is overall very busy, according to Alaniz, who said he expects to see Chapter 11 matters continue to be filed at a steady clip for the rest of the year.

Personal and business bankruptcy filings actually declined by 11.8% for the 12-month period that ended June 30, according to statistics made public Wednesday by the Administrative Office of the U.S. Courts. That comes, the office reported, despite a "sharp" rise in unemployment due to the COVID-19 pandemic.

But, in its report, the administrative office said that bankruptcy filings tend to "escalate gradually" following an economic downturn, which suggests that a rise in filings is still down the road.

Alaniz said he has handled all aspects of bankruptcy representations—debtors, creditors, asset purchasers and boards of directors—and his clients are in sectors including energy, retail and health and fitness.

His active matters include Chapter 11s in the U.S. Bankruptcy Court for the Southern District of Texas for Covia Holdings and Hi-Crush, and a Chapter 11 for Vista Proppants and Logistics, filed in the U.S. District Court for the Northern District of Texas.

In recent years, Alaniz has helped represent debtors ASARCO, Bristow and ABC Dentistry in bankruptcies, and he said that it was through the ASARCO matter that he first met some bankruptcy lawyers from Reed Smith.

Ed Estrada, the global chair of Reed Smith's financial industry group, wrote in a press release that Alaniz brings a "highly regarded bankruptcy practice" to the firm at a time when demand is growing.

"Given the economic uncertainty businesses are facing across various sectors, and the uptick in demand for complex bankruptcy experience, his arrival is timely and will strengthen and add depth to our global restructuring practice," Estrada wrote.

Alaniz formerly taught bankruptcy law as an adjunct at SMU Dedman School of Law, and coached the school's Duberstein moot court team to five national championships, the most in the competition's history.

Reed Smith opened its Dallas office in May 2019 with 16 lawyers, a lawyer count that has more than doubled since then.

Baker Botts declined to comment on Alaniz's departure.

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