The Lawyer Africa Elite 2014 features an in-depth look at 46 leading independent firms’ strategies in 15 key sub-Saharan jurisdictions, as well as the views of in-house counsel from some of Africa’s largest companies... Read more
This year, The Lawyer’s annual ranking of the largest UK law firms by turnover is available as an interactive, digital benchmarking tool. For the first time this will allow you to manipulate each data set against the metrics of your choice.
Allen & Overy (A&O) has secured a £75m bank facility to help cover the cost of its new offices at Bishops Square.
The loan was put in place last year to augment the current £65.8m cash surplus A&O has built up via retained profit to pay for the move, planned for this October.
A&O finance director Ian Dinwiddie said the firm currently had no bank debt, but was now "getting into the period of heavy spend", with 800 contractors on-site.
"We already have a significant fund to pay for the fit-out, but we expect we'll draw down on the facility to an extent, depending on trading conditions," said Dinwiddie.
It is thought the amount borrowed will be around £40m.
A&O's accounts show that the firm has also created a minimum capital layer for the first time, following the introduction of a new accounting adjustment (FRS25).
Partners' capital currently classified as equity, the minimum capital layer, is £35m. The magic circle firm has reclassified the remainder of its partners' capital (£74.5m) as a liability, putting total partners' capital at A&O at £109.5m.
Dinwiddie said A&O had modified the partnership deed to create the minimum capital level. If partnership capital were to fall below £35m as a result of repaying partners their money, there would now be no automatic right to repayment. "The decision to repay would be down to the board," he said.