Details of the planned rescue package were revealed yesterday at a meeting of the verein firm’s EUME partners in London. With the legacy SJ Berwin business currently staring down around £30m in debt, the firm’s Asia arm has offered financial aid on the condition that the European partnership press ahead with its planned £14m capital raising. Partners will also need to commit to staying with firm for at least the next 12 months in order to receive the aid.
Capital call
The firm’s planned capital raising was approved by 98 per cent of the European partnership when it was first announced in July this year. Then, the £14m total translated into around £4,000 extra per-point on the firm’s 20-60 point remuneration ladder. However, following a string of partner exits from the firm in recent months, remaining partners will need to stump even more cash in order to hit the £14m target set by the firm’s partnership in Asia.
Deadline
The proposed bailout will be subject to a vote, and must secure the approval of at least 60 per cent of the European partnership in order to proceed. KWM Asia has given the European partners until 21 November to accept the deal.
Sources: Legal Week; Legal Business
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