The firm’s pension deficit has reportedly been a stumbling block in earlier merger conversations. However, the firms LLP account have revealed that Nabarro slashed its deficit by more than half from £31.9m to £12.2m before clinching a merger agreement with CMS and Olswang. The reduction is a significant about-face, given that Nabarro’s deficit climbed from £24m to £32m in the 2014/15 financial year.
Speeding up
According to the accounts, Nabarro had planned to pay £1.25m per year between 2015/2016 to 2018/2019, with the eventual objective of eliminating its deficit entirely within 19 years. However, the firm injected £4.4m into pension scheme last year in a bid to bring down the debt more quickly, and is planning to pay in £5.25m for the year ending April 2017. The LLP filing will be Nabarro’s last as an independent entity, as its £1bn megamerger with CMS and Olswang is set to go live early next year.
Sources: The Lawyer; Legal Business
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