| Talk in the London legal market right now is dominated by one firm almost exclusively - King & Wood Mallesons - and last week's top stories reflect that. On Monday Legal Week revealed that partners in the Europe, UK and Middle East (EUME) arm of the verein could see two years' profits clawed back if a £14m recapitalisation of the business was rejected by partners in the legacy SJ Berwin business. On Tuesday, as whisperings grew increasingly excited, the firm announced that the recapitalisation plan had failed due to a lack of support from European partners, leaving management looking for another option, including a possible merger. The European partners' decision plunged the future of the EUME business into question, as a planned bailout from the Asia-Pacific arms of the verein had been conditional on European partners also agreeing to put in cash. The extent to which these European partners had lost confidence in the business became apparent when Legal Week broke news that just 21 of the roughly 130 partners left in the partnership had committed to all terms of the recapitalisation plan, which would have included an individual contribution from partners of roughly £4,000 per point and a 12-month lock-in. Former partners and leaders of rival firms reacted with shock to the news, while accountants and partnership and restructuring experts have weighed in on what is likely to happen next at the firm, with the prospect of a pre-pack administration and sale of the business now a very real possibility if a merger partner is not found or new banking terms agreed. Meanwhile, against the backdrop of this turmoil, more partners are starting to leave the business. Goodwin Procter confirmed the long-anticipated hire of KWM's UK investment funds head Michael Halford on Tuesday, going back to pick up another four partners at the close of the week. The implications for staff are huge, with the timing in the run-up to Christmas particularly unfortunate. Last week wasn't bad news for all though – anyone looking for some light relief can read all about the winners of the British Legal Awards, which were hosted by Legal Week last Thursday in a new venue in Finsbury Square. You can read some of the thinking behind the shortlist for the firms in the running for Law Firm of the Year. Some of the other (non-KWM related) content on Legal Week last week: | 
0 comments:
Post a Comment