“It’s only when the tide goes out that you learn who’s been swimming naked.” Bearing this Buffettism in mind, a smattering of firms’ recent finance-related facts provides an interesting snapshot of the profession at this testing time.

Latest: Halliwells Administration Update

Update: Halliwells Administration
Legal News This Sunny Week

Hill Dickinson may be lining up a deal to buy the assets of Manchester-based law firm Halliwells….
When Leeds based law firm Fox Hayes went into administration last month, that was just one of its problems. This week the firm was fined nearly £1 million for “recklessly” assisting Spanish boiler rooms to defraud British investors. It is understood that the firm helped the Madrid-based fraudsters to sell shares in high-risk illiquid companies to about 670 British investors who together lost about $20.3 million (£14 million). According to The Times the fine included £454,770 representing commissions paid by the boiler room operators to Robert Manning, its former senior partner, plus an additional £500,000 penalty. Skinny-dipping in broad daylight.

It seems that Legal Week has done some trawling recently. Information obtained by it from Companies House shows that back in December, Halliwells made the rare move for a law firm of agreeing a loan arrangement which effectively gives a bank security on the firm’s assets. The debenture with Royal Bank of Scotland gives the bank a “fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, uncalled capital, buildings, fixtures, fixed plant and machinery”. It is understood that the agreement would give the bank greater rights in the event of the firm going into administration, boosting its position as a creditor and giving it greater control of assets. So. keep your binoculars close, the tide still has some going out to do before all is revealed here but the firm maintains it is still swimming strongly…

Meanwhile Eversheds is pulling its waistband tight to avoid the strong pull of nasty currents by keeping its top three pay bands unused when the firm finalises its partner remuneration review in March. The firm operates on a 12-band system and designate managing partner Lee Ranson has confirmed that no-one is likely to join bands 10 or above as it keeps those higher tiers in reserve. Costume and a buoyancy aid comfortably in place.

Finally, Clifford Chance has topped the Infrastructure Journal’s global finance league with 47 deals last year, worth $64.5bn (£44.4bn). So despite the recent redundancies and subsequent negative publicity, the firm has bolstered its status as a veritable Michael Phelps of the legal world decked out in trunks and a wetsuit.