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Sidley next to gain from Northern Rock's hard place

Author: Caroline Grimshaw

Published: 12/10/2007 15:46

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Sidley Austin has joined a clutch of major firms to have landed roles on the high-profile Northern Rock saga, with the US giant advising on the beleaguered lender’s securitisation portfolios.

City-based London securitisation partner Robert Torch is leading the team for Sidley, which has advised Northern Rock on the majority of its major securitisations, including the £20bn Granite Master Trust in 2005.

The Chicago-based firm has a continuing role as discussions heat up between potential buyers and Northern Rock, after the lender was forced to approach the Bank of England for emergency funding in mid-September.

Sidley is advising primarily on due diligence queries rather than being involved directly in takeover discussions.

The last month has seen a host of top City firms pick up advisory roles, with Freshfields Bruckhaus Deringer controversially providing corporate advice to Northern Rock, while the Bank of England – a long-standing Freshfields client – turned to Clifford Chance.

Magic circle rival Allen & Overy is acting as Northern Rock’s banking counsel, while Slaughter and May is acting for the Treasury and Herbert Smith is advising potential bidder JC Flowers.

Boston firm Bingham McCutchen is also understood to have secured a role, with the US restructuring leader being instructed to advise a group of bondholders on their position.

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