Slater and Gordon Australia, UK separation updated
The separation of the Australian and UK operations of ASX-listed Slater and Gordon will include a transition period of up to 18 months during which time the Australian firm may still be financially obligated for UK defaults.
Although the two parts of the business will seek to end parent guarantees following the recapitalization of the firm, the parties have agreed a transition period which may take up to 18 months.
While the agreement means that the Australian public company and its subsidiaries will be “released from their obligation to pay, guarantee, or otherwise secure the payment of, any secured debt in respect of the UK operations from the Implementation Date”; there is provision for certain guarantees, specifically the UK firm’s major office leases.
“If, during the transition period, the UK operations default on the UK leases and/or other material contracts the subject of the parent guarantees, and those parent guarantees have not yet been released, the Company may be liable for any unpaid amounts under those contracts at the time of default,” a statement from Slater and Gordon to the ASX reads.
The ending of the obligation for the UK firm’s secured debt will mean a reduction in the Australian firm’s secured debt of $636.6 million.
A shareholders meeting is taking place next week to vote on the recapitalization plan.
International firm takes team from soon-to-close Sedgwick
US-headquartered law firm Sedgwick has seen another team exit with its London-based insurance team joining RPC.
Among the two new partners is Naomi Vary who will launch the firm’s political risk team and join up with the firm’s existing Singapore-based team led by Geraldine Bourke.
Meanwhile, Karen Morrish will become RPC’s seventh professional indemnity partner.
DLA Piper expands online resource for clients
Global firm DLA Piper has launched a new online resource focused on company formation, growth and expansion.
Accelerate is aimed at investors, start-ups and entrepreneurs and will showcase successes and provide ‘how-to’ guides for business owners to understand common early-stage issues.
"Setting the foundation for a successful startup can be among the most challenging and rewarding business endeavors, and Accelerate is meant to ease the process with early and efficient counsel and 'Garage to Global' services," said Victoria Lee, global co-chair of DLA Piper's Technology sector. "Our global platform is unique, and this new resource showcases our ability to support global expansion, even for companies in the earliest stages and most competitive markets."
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