A&O and Cadwalader TXU walls stand firm

Allen & Overy (A&O) and Cadwalader Wickersham & Taft have had the Chinese walls they erected to stop information flowing between the multiple parties they are acting for on the TXU Europe administration ratified by the Commercial Court.

A&O is acting for TXU joint administrator KPMG, TXU’s banks, TXU creditor Barking and the bankers for another creditor, AES Drax. Cadwalader is advising KPMG and TXU’s bondholders.

Herbert Smith, representing the other joint administrator Ernst & Young (E&Y), A&O and Cadwalader drew up a unique ‘lawyers protocol’, outlining how the firms would preserve their Chinese walls.

Herbert Smith is not conflicted but was involved in the protocol by E&Y to avoid KPMG’s law firms feeling victimised, one source said.

Mr Justice Blackburne ruled last Friday (28 March) that the protocol was acceptable.