Legal 500: Banking turmoil hits Midland law firms

LAW firms in the Midlands have been handicapped by subdued activity in the banking sector although restructuring work is seen as a growth area due to the ongoing economic climate, sector analysts have said.

All this week, TheBusinessDesk.com in association with RBS is taking a sector-by-sector look at the state of the region’s legal market as outlined in the latest Legal 500 report.   

Gary Trueman, RBS Regional Director, said finance activity was effectively “a tale of two markets”.

“Due to the muted corporate finance market and subdued levels of employment from banks and other funders in deal activity, fees have been harder to generate and sustain,” he said.

“On the insolvency / restructuring angle this market reflects the current economic environment. Whilst insolvency numbers have thankfully not been what some had feared, restructuring work has continued to be a growing income earner in the business and corporate marketplaces.”

The Legal 500 report states DLA Piper has a ‘strong and well-established team’ which provides ‘robust and commercial advice’ on large transactions. It is recommended for its experience in leveraged finance and asset-based finance. Key partners are the ‘very responsive’ Brian Woolcock and Stephen Bottley. The firm has advised Barclays, RBS and Santander on the acquisition funding for the Extra MSA motorway service station group. It also acts for Lloyds TSB and Lombard.

To download a pdf of The Legal 500 – West Midlands Review 2011, click here

At Pinsent Masons, the practice is noted for its expertise in leveraged financing transactions, and in cross-border transactions. The ‘very experienced’ Alice Broadfield and Matthew Heaton provide ‘grounded advice’ and legal director Graeme Walton is willing to ‘work towards a solution with clients’. The firm advised Santander and RBS on facilities for Birmingham International Airport and advised Barclays on corporate facilities for the University of Leicester. Other clients include Matrix and Lloyds Banking Group.

Eversheds is said to have a ‘strong team’ under lead partner Pat Johnstone, who is recognised for her experience in leveraged financing and corporate lending. It advised Yorkshire bank on the acquisition funding for the £60m management buy-out of Synseal Extrusions by HIG Capital. It also acts for Birmingham Airport and RBS.

At Gateley, Andrew Madden is said to be ‘consistently reliable’ and the firm has secured numerous national panel appointments and is recommended for its expertise in asset-based lending and asset finance. The team advised bank of Scotland, as agent, on financing the $65m acquisition by Dechra Pharmaceuticals of Florida-based DermaPet.

Martineau has a ‘first-class team’ under the leadership of the very experienced Ian Baker. Core areas of expertise are said to be leveraged finance, asset finance and property finance. It is experienced in high value restructuring and turnaround transactions. Active clients include Santander and Yorkshire Bank.

At Squire Sanders Hammonds, the firm is said to have a ‘well-organised team’ and in John Bew has someone who ‘always finds a way of getting things done’. Specialisms are said to be pan-European asset-based finance. The ‘very practical’ David Adams advises on a range of national and cross border deals. Stand-out deals are said to be the action for Gresham on the financing of the £32m management buy-out of Team Telecom Group.

Wragge & Co’s Paula Laird and Chris Brierley and said to deliver ‘no matter how complicated the deal’. It advises on a full range of banking issues including UK and cross-border mid-market acquisitions, debt and leveraged finance deals, and Islamic financing transactions. Clients include BNP Paribas.

The ‘experienced’ Paul Ray leads a team at Browne Jacobson that has seen a growing number of instructions in refinancing and restructuring matters. It acted for the vendor on the banking aspects of the £80m sale of Synseal Extrusions. Active clients include AIB and RBS.

Cobbetts advised NatWest on the provision of the £18m hotel at Drayton Manor Park. It acts for borrowers and lenders, and secured a number of key bank panel appointments. Ian Ilersic is ‘very experienced’ and has expertise in acting for banks in funding transactions in the healthcare sector.

Else Solicitors advises on issues ranging from security validation and perfection to factoring and invoice discounting, while Freeth Cartwright’s clients include NAB Group and Santander.

Vicki Simpson heads the team at Shakespeares and has considerable experience in property financing. Major clients include West Bromwich Commercial and Islamic Bank of Britain. The practice covers corporate banking and LPA receiverships.

Shoosmiths has recently advised clients such as HSBC, Derwent Housing Association and Toyota Financial Services.

In insolvency and corporate recovery, DLA Piper is said to handle a considerable amount of lender-driven restructuring and property-related insolvency work. Key mandates included acting for PwC/Bank of Scotland in the administration of a property company holding various bingo halls around England and Wales; and advising HSBC/BDO on the administration of a chain of furniture retailers. Other clients include Begbies Traynor, KPMG and Baker Tilly.

Eversheds is said to have a ‘strong team’ which includes the ‘gifted and innovative’ Gemma Curtis and the ‘dependable’ Andrew Jordan, who is ‘someone you would want next to you in the trenches’. In a successful year it advised on the restructuring of a number of high profile corporate. A key mandate was acting for Begbies Traynor in the administration of the Wedgwood Museum trust. Strong in restructuring the real estate sector, other clients include Lloyds Banking Group, PwC and Deloitte.

Gateley has a sizeable team which acted in a number of high profile matters, notably for the joint administrators of Birmingham Development Company in relation to the Cube development. It also acted for the liquidator of a leading automotive manufacturer in the successful conclusion of a claim against its former administrators. Clients include Lloyds TSB, Deloitte and Zolfo Cooper.

Stephen George at Squire Sanders Hammonds is noted for his expertise in pension deficit issues. The firm advised PKF as administrators of Super Aguri F1, the Formula One motor racing team.

Wragge & Co is said to have a ‘very responsive team’, which includes Vicki Conway, who ‘gets the deal done’. It acted for the administrators on the sale of the Legion Group and Legion FM.

Clarke Willmott has a strong ‘commercial and pragmatic’ approach, counting Bank of Ireland, BDO and Butcher Woods as clients. Meanwhile, Cobbetts has a team which has been strengthened by the appointment of Daryl Shorthouse from Shoosmiths. Kay mandates included acting for Begbies Traynor and RSM Tenon as administrators of Octavian.

Harrison Clark is described as a ‘city-type firm for a provincial price’. Highlights included acting for Adroit Modular Buildings and the administrators of AIM-listed Henderson Morley.

Higgs & Sons has Begbies Traynor and Smith and Williamson amongst its clients, while it has seen an increase in s110 restructurings.

Martineau’s advised King Struge London on an LPA receivership concerning a development site, while Shakespeares has active clients including KPMG, Mazars and Islamic Bank of Britain.

Shoosmiths is highlighted for its work advising funders to the automotive sector. High profile deals include acting for MCR on the administration of Vergo Retail. Clients include Anglo Irish Asset Finance, Nationwide Building Society and RBS.

Other firms active in insolvency and corporate recovery include: Sydney Mitchell, The Wilkes Partnership, Beswicks Solicitors, Blakemores, Brindley Twist, Tafft & James, FBC Manby Bowdler and Irwin Mitchell.