King & Wood Mallesons LLP (KWM) will finally file for administration today, The Lawyer has learned.
All of the firm’s remaining assets and control of the business will now transfer to Quantuma administrator Andrew Hosking.
A number of advisors to the administration process have been appointed by Hosking and approved by KWM lender Barclays. The advisers are CMS Cameron McKenna partner Rita Lowe, who famously advised on the Dewey & LaBoeuf administration, Pinsent Masons partner Steve Cottee, and Ashfords, which is providing regulatory advice. Sam Palmer, head of financial risk at Ashfords, was appointed as solicitor manager to the administration.
Hosking will attempt to repay some of KWM’s substantial debts in the UK and Europe, including its £35m loan from Barclays.
KWM will cease trading immediately after Hosking’s appointment this afternoon.
Staff remaining at the firm while transfers take place will imminently move into new, smaller premises.
KWM first filed its notice of intention to appoint administrators on 22 December, and renewed it last week to buy itself more time to sell off parts of the business.
So where have KWM staff gone?
KWM managing partner Tim Bednall has sold a number of teams, including trainees, associates and support staff to other firms. Goodwin Procter took a 26-strong team last week. Other groups have moved to DLA Piper and Reed Smith, with more set to move to Macfarlanes, Covington & Burling and Keystone Law.
KWM China is understood to have bought between 30 and 40 lawyers across the UK, Europe and Middle East. The Dubai team includes SJ Berwin lifer and former head of litigation Tim Taylor QC.
Last week Bednall broke the news to all remaining employees that it would not be able to pay salaries owed for January after Barclays rejected a call for extra funds from the firm.
On the same day KWM’s former administrators AlixPartners pulled out of the administration, with the firm instead turning to Hosking.
In total, more than 40 partners left KWM across the UK, Europe and Middle East at the end of 2016. Particularly in the last two months as the LLP’s finances reached crisis point and an administration became inevitable. Around 90 partners left the firm in total over 2016.
Source: The Lawyer
