Hammonds

In the lead article of The Lawyer dated 4 August 2003 we stated that Hammonds was suffering from a “debt crisis” and that it was, as a result, having to ask its equity partners to put up £18m in additional capital. We now understand that the firm is not subject to any such “crisis”. Its debt position is well within its agreed credit facilities and the firm is fully supported by its banks with which we are told it enjoys an excellent relationship. Although Hammonds is considering a cash call, this is not due to any pressure from its banks; it is purely a matter of financial management by the firm. Any such call would as a maximum only be in the region of £7.5m to £11m and not the £18m referred to in the article. We accept that the current level of Hammonds’ capital is indeed low in comparison with its competitors. We apologise for any embarrassment and inconvenience caused to Hammonds by this article.