As many of you know, CDO’s are dead. Derivatives are dead. And lawyers who used to work on these financial instruments are either laid off, waiting to be laid off, or quickly becoming experts in the exciting field of bankruptcy and restructuring.

But what is a firm to do with all those structured experts sitting around and planning employment discrimination lawsuits? McKee Nelson has an interesting idea: sell to someone else.

AmLaw Daily and Legal Week reported this morning that McKee Nelson was in advanced talks to send a team of its corporate attorneys to the U.K. firm Ashurst:

The McKee Nelson group informed the firm’s partnership of the talks yesterday, indicating that the team — which covers structured finance, derivatives and municipal finance — was almost certain to move, according to the report. Ashurst is hoping that a number of associates also will join the group.

Above the Law obtained McKee’s statement officially announcing the move this afternoon:

McKee Nelson LLP announced today that its municipal financial products and equity derivatives practices, as well as a portion of its CDO and corporate practice, will move to its international structured finance alliance partner, the UK law firm Ashurst.

That seems to beat the bag out of what Pillsbury is offering today.

Details on how many associates will be making the move are still being worked out, but moving large portions of practice groups that have hit the skids — instead of firing them — seems positively excellent in today’s market.

Granted, McKee Nelson has already been through two rounds of layoffs. But a move like this shows that the firm is at least thinking outside of the box when it comes to managing an oversupply of attorneys during an economic crisis. Maybe this will mean something to law students come recruitment time?

Read the full McKee Nelson press release, after the jump.

MCKEE NELSON — STATEMENT — ASHURST

McKee Nelson LLP announced today that its municipal financial products and equity derivatives practices, as well as a portion of its CDO and corporate practice, will move to its international structured finance alliance partner, the UK law firm Ashurst.

“This action is in keeping with the firm’s efforts to diversify its practice,” stated Founding Partner Will Nelson. “On a going forward basis, the rapid growth and success of our litigation/enforcement practice, coupled with this reduction in our corporate/finance practice, balances our practice mix with corporate/finance comprising 26 percent of the firm’s lawyers; litigation/enforcement 34 percent; and tax 40 percent.”

“McKee Nelson remains committed to maintaining its market leadership in structured finance and securitization,” continued Nelson. “We will continue to serve our clients at the very highest levels.”

The McKee Nelson lawyers joining Ashurst include Douglas Bird, Richard Davis, Scott Faga, Eugene Ferrer, Thomas Glushko, William Gray, Steven Kopp, David Nirenberg, Patrick Quill, Michael Voldstad and Alice Yurke. It is anticipated that the associates, counsel and staff with whom these partners work will join them at Ashurst, although the details are still being finalized.

“The lawyers and staff joining Ashurst are talented professionals and valued colleagues,” stated Firm Co-CEO Reed Auerbach. “We wish them well in their new endeavor.”

McKee Nelson Finance Team Set to Join U.K.’s Ashurst [AmLaw Daily]
Ashurst to forge US finance team with McKee Nelson deal [Legal Week]

Earlier: Nationwide Layoff Watch: McKee Nelson (Redux) (Or: The proper way to do layoffs.)