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After currency devaluation in Asia, lenders and borrowers are scrutinizing material adverse change (MAC) clauses to determine their respective positions. By Richard M Gray of Milbank, Tweed, Hadley & McCloy, Singapore

Japan’s legal system has a range of alternatives for insolvency proceedings. Bankruptcy is by far the most common. By Naoaki Eguchi and Yoshiaki Muto of Tokyo Aoyama Law Office and Jeremy Pitts of Baker & McKenzie, Toyko

The crisis in Asia has boosted the existing dangers of failures in project finance transactions. This article outlines the ways to find a solution to failures. By Troy Alexander of White & Case LLP, New York

UK firm Cameron McKenna is to incorporate US firm Faegre & Benson's Almaty team into its Kazakstan office. Cameron McKenna adds Faegre's resident partner, Thomas Johnson, and three local Kazak lawyers to its Almaty office, which will now have a total of eight lawyers. This is a further rationalization of the Kazakstan legal market following the merger of Pepper Hamilton & Scheetz's Almaty office with Coudert Brothers (see International Financial Law Review, March 1998, page 4). Faegre & Benson has decided to withdraw from central Asia. James Stephenson, a partner in Minneapolis, says that opening a Kazakstan office in 1992 was based on one particular project. The firm maintained a presence in Almaty but did not have long term objectives in the region. "We reached a point where we needed to invest additional resources in order to capitalize on the office's success," he says. "It is our only office in the region and it simply didn't fit into our strategy." Stephenson says the firm's international practice will concentrate on serving US clients in Europe. Faegre & Benson has an office in Frankfurt and formed an association with UK firm Hobson Audley Hopkins & Wood in August 1997.

UK firm Norton Rose is disbanding its national group of associated firms, the Norton Rose M5 Group, to concentrate on an international strategy. The group unanimously agreed to wind up its formal links by the end of July 1998. One possibility was that the group would eventually become a single national firm. However, a decision was taken not to merge in 1993, and the firms began to pursue their own individual strategies, most notably when two members of the group, Booth & Co, and Addleshaw Sons & Latham merged last year.

The largest US merger between east and west coast law firms is being contemplated by New York firm Reid & Priest and San Francisco's Thelen, Marrin, Johnson & Bridges LLP. The combined firm would have about 350 lawyers. Meanwhile, Reid & Priest has also linked with ambitious Indian firm Titus & Radhakrishnan. Richard Gary, Thelen Marrin's chairman, says: "The conversations are at a very serious stage. I expect there will be a decision within the next few weeks." A spokesperson for Reid & Priest refuses to comment.

Creditors and shareholders of insolvent Korean companies have three main attractive systems to protect their interests. The courts are showing increasing flexibility. By YS Oh and Keun Byung Lee of Bae, Kim & Lee, Korea

Serdar Paksoy, name partner and co-founder of leading Turkish firm Hergüner Bilgen & Paksoy, has walked out on the firm and set up his own practice. Paksoy & Co opened for business in Istanbul on January 1 1998. The reasons for the split are numerous, but include differing views on management, growth and practice areas, says Paksoy. Esin Taboglu, a senior associate at Hergüner Bilgen, has followed Paksoy and will join him as his partner in the new firm. Paksoy & Co has four associates in addition to the two partners, including a former associate at Hergüner Bilgen.

UK retail group WH Smith has sold its Waterstones book chain to a joint venture between UK's EMI Group and US Advent International for £300 million (US$495 million) in cash. The company, known as HMV Media Group, will also acquire EMI's HMV music retail group and Dillons bookshops. It is expected to rank as one of Europe's leading retailers of books, music, computer games and videos. Linklaters & Paines, London, advised WH Smith. Lead partner was corporate specialist Mark Stamp. Also involved were partners Ian Karet (intellectual property) and Bill Allan (competition). Titmuss Sainer Dechert, London, provided property advice to WH Smith.

• In London, US firm Akin, Gump, Strauss, Hauer & Feld has poached three lawyers from US rivals in the city. Kaamil Ansar, Andrew Thomas and Elisha Flax are being hired to expand the firm's London project finance team. Ansar, a dual-qualified project finance specialist, joins the firm as partner from Jones, Day, Reavis & Pogue. Thomas and Flax, both UK solicitors, join as counsel and associate from Chadbourne & Parke. • US firm Winthrop, Stimson, Putnam & Roberts has also added to its project finance team two partners from rival New York firm Verner, Liipfert, Bernhard, McPherson and Hand. Roy Bowman and Douglas Ochs Alder will join the firm's Washington DC office. Bowman was a shareholder in Verner, Liipfert and chaired the firm's international transactions and trade practice. The firm has also poached project finance partner Jay Fortin from Watson, Farley & Williams.