A&O’s docGenix on red alert as investment deadline passes

Allen & Overy (A&O) has missed the deadline it set itself to save docGenix, its financially troubled derivatives risk analysis business.

Derivative Services, which owns a 58 per cent stake in docGenix, but which has a 100 per cent interest in its subsidiary’s losses, was forced to write down a £1.3m investment in docGenix in 2009.

Subsequently Derivatives Services partners, who include A&O senior partner David Morley, refused to supply further cash to ­sustain the subsidiary.

A note in the parent ­company’s accounts stated: “In the event that no new source of funding can be identified the operations of docGenix LP will cease ­during the year ended 31 December 2010.”

Despite that date having passed and no deal having been done, a firm spokesperson remained “positive about the prospects for the business” and said that discussions were still ongoing with a potential investor.

DocGenix was established in 2008, while Derivative Services launched just a few months after partner Dan Cunningham joined from Cravath Swaine & Moore on an enhanced package, including a stake in a derivatives venture. He left A&O in 2009 for Quinn Emanuel Urquhart & Sullivan.