CMS junior partners to pay up to £50k in response to HMRC shake-up

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CMS Cameron McKenna has called on its fixed-share partners (FSPs) to make a substantial contribution of capital in light of HM Revenue & Customs’ (HMRC) recent overhaul of the way partnerships are taxed.

Members of the junior partnership that fall into band one of the firm’s four-tiered remuneration structure have been asked to contribute around £35,000 to £50,000 each. With 90 partners in this bracket, this means a total capital investment of up to £4.5m.

A partner at the firm told Legal Business: ‘The firm doesn’t necessarily need the money – it’s not a call for borrowings or to meet debt requirements. It’s a call to even out the capital positions across the various levels of the partnership. People were not necessarily happy taking on more borrowings but it hasn’t caused any ructions across the junior partnership.’

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Eversheds in talks to extend voting rights as 164 junior partners inject cash

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Eversheds has started talks over the voting rights of its fixed share partners (FSPs) after they were asked to contribute 25% of their annual earnings in response to HM Revenue & Customs (HMRC) tax changes for limited liability partnerships (LLPs).

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Hogan Lovells calls on non-equity partners to inject £60k to £100k in response to HMRC shake-up

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Hogan Lovells has called on its non-equity partners to make a significant capital contribution in light of HM Revenue & Customs’ (HMRC’s) decision to overhaul the way salaried partners are taxed, which is set to kick in this month.

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Soft H2 debt restructuring market blamed for 12.6% drop in 2013 US revenue for Bingham McCutchen

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When many firms were busy cutting costs and dicing teams in 2008, Bingham McCutchen weathered the economic downturn pretty well thanks to the solid inflow of work in its debt restructuring practice.

Five years later, with corporates finding cash far easier to come by, and Bingham is feeling the pinch after its H2 2013 restructuring work slowed and its revenues for the financial year dropped by 12.6% to $762m from $871.8m in 2012. Continue reading “Soft H2 debt restructuring market blamed for 12.6% drop in 2013 US revenue for Bingham McCutchen”

Investment costs: DAC Beachcroft issues £10m cash call amid positive half-year financials

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DAC Beachcroft has issued a £10m cash call to LLP members and simultaneously increased its rolling credit facility to £40m, as it aims to reach target revenue of £200m by the end of the financial year.

The top 30 firm, which merged with Davies Arnold Cooper in 2011, announced today (18 November) that its half-year results for 2013/14 amounted to £90m in total billings for the six-month period to 31 October, an increase of 7% compared to the first half of last year. Senior partner Simon Hodson told Legal Business he believes the results were ‘quite strong.’ This increase is on top of a 15% rise in revenues for the financial year 2012/13 to £188.2m.

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It’s a wrap – Penningtons acquires Manches after PWC brokers sale of business and assets

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In what was initially billed as merger talks but has turned out to be far more of a takeover Penningtons yesterday acquired the trading operations of Manches in a deal brokered by PriceWaterhouseCoopers as administrators.

Under the business transfer agreement, 265 Manches employees, including 46 partners will now move to Penningtons. However, in a reflection of the fact that, despite their contrasting recent profitability the firms are close in lawyer size and revenues, the combined firm will be called Penningtons Manches. Continue reading “It’s a wrap – Penningtons acquires Manches after PWC brokers sale of business and assets”

HMRC review raises questions over law firm financing as banks tighten up lending terms

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Law firms are facing a shake-up of their banking and taxation arrangements as both lenders and HM Revenue & Customs (HMRC) move to minimise their losses under the current system.

Following HMRC’s consultation on limited liability partnerships, draft legislation will be unveiled in its autumn statement, which is expected to substantially tighten the criteria for favourable tax treatment under partnership.

The legislation, which according to Norton Rose Fulbright partner Dominic Stuttaford may be tweaked but is unlikely to change tack, is expected to say that a partner is someone with a share of the equity – and of the risk – leaving the status of salaried partners in limbo. Continue reading “HMRC review raises questions over law firm financing as banks tighten up lending terms”

Barclays £5.8bn rights issue sees CC, Sullivans and Freshfields in the lead

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Barclays has begun the biggest capital raising by a UK bank since 2009, under which Clifford Chance (CC), Sullivan & Cromwell and Freshfields Bruckhaus Deringer led on its initial £5.8bn rights issue, as the global financial institution moves to plug a £12.8bn funding gap.

A team from CC, led by London corporate partner Patrick Sarch and capital markets partner Simon Thomas, advised on English law for Barclays, while a Sullivan & Cromwell team in London advised the bank on US law, led by client relationship partners George White and John O’Connor.

Deputy general counsel Michael Shaw led the Barclays team.

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