According to its latest annual report, published yesterday (31 March), Northern Rock paid £21.2m in professional fees in the second half of 2007 before its controversially nationalisation.
Freshfields is poised to collect the lion’s share of legal fees, having acted as Northern Rock’s main legal adviser – a role in which it will continue, according to the report . The firm has also dealt with various shareholder plans and service contract matters.
Magic circle rival A&O, meanwhile, is also set to pocket a hefty sum after advising the stricken lender on an attempted takeover bid in October by Sir Richard Branson’s Virgin Group. The City giant also acted on the provision of an emergency funding facility from the Bank of England, when banking partner Trevor Borthwick led the team.
Northern Rock has also paid out £12.5m to firms that represented the Tripartite Authorities – the Financial Services Authority, the Bank of England and the Treasury – throughout the saga.
Slaughter and May advised the Treasury on the nationalisation, fielding a team under partner Charles Randall, while Clifford Chance was instructed to act for the Bank of England, a regular client of Freshfields.