A&O, Freshfields bag £15m from Northern Rock

Allen & Overy

and Freshfields Bruckhaus Deringer have made at least £15m in combined fees from the collapse of Northern Rock, it was revealed yesterday (31 March).

The troubled bank spent £21.2m on legal and accountancy firms in 2007, according to its annual report.

Freshfields, which is listed as Northern Rock’s main advisor in the report, took away nearly half the total with fees, thought to be around £10m.

The firm had advised Northern Rock as a potential takeover target, but lost its leading role when the bank was nationalised in February 2008.

Allen & Overy, which advised Northern Rock on its emergency loan facility from the Bank of England, is thought to have earned around £5m in fees.

The report also revealed that Northern Rock had picked up the bill for £12.5m in fees incurred by the Tripartite Authorities: the Treasury, the Bank of England and the FSA.

Slaughter and May and Clifford Chance advised the Treasury and the BoE respectively.

Linklaters will have a key role as Northern Rock tries to rebuild its business over the next few years.

Last month www.thelawyer.com reported that Linklaters partner Charlie Jacobs had been instructed to advise new chairman Ron Sandler and the newly-appointed board.

The bank has pledged to repay its £24bn emergency loan by 2010, and yesterday unveiled a business plan which will see staff levels reduced by a third within three years.