KWM EUME managing partner Tim Bednall has informed staff that no one will be getting paid in the run up to the firm’s administration later this month. The announcement follows a decision by Barclays, the firm’s main lender, not to authorise salaries and other ‘essential’ payments. The message from Mr Bednall to the firm’s employees reads:
‘Barclays, our bankers, indicated to me on Thursday evening that they were not willing to approve the salary payments due to you. I made a proposal to the bank on Friday to counter this, asking that essential payments including salaries be paid. This proposal was rejected on Friday. I made a further proposal to ensure salary payments could be made on Sunday and this, also, was rejected. A final proposal was submitted to the bank last night and, with deepest regret, this too was rejected this morning.’
KWM has declined to issue a public statement about the canceled salaries.
Sources: The Lawyer; Legal Week
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