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.