Halliwells equity partner seeks advice in dispute over exit terms

Halliwells is set to lose its last equity partner in London, with outgoing City corporate recovery head David Grant turning to Herbert Smith for advice relating to a potential dispute with the firm over exit terms.

The news comes as it emerges that Halliwells is seeking a multimillion-pound loan in order to pay its January 2010 tax bill.

Grant, who previously served as London head, has handed in his notice and is believed to be talking to a number of firms. His departure is the latest in a number of exits from the national firm in recent months and he is the third to seek external legal advice in relation to his departure and other issues.

He has instructed Herbert Smith litigation partner Alan Watts over potential action relating to a number of issues, although has yet to launch proceedings. Halliwells has turned to CMS Cameron McKenna litigation partner Guy Pendell.

According to filings with Companies House, more than 30 partners have resigned from Halliwells' limited liability partnership since November 2008. The number of departures has prompted the firm to attempt to hold some of those departing to 12-month notice periods.

Separately, Halliwells is understood to be looking to secure a £3.2m short-term loan, unsecured over six months, to pay a tax bill due this month. It is unclear whether or not the loan has been approved.

Halliwells and Grant declined to comment.

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