Legal News: Key Updates You Can't Miss! ⚖️

Slaughter and May try to survive the US invasion

Every autumn, partners at elite British Law firm Slaughter and May are invited for paterfamilias - a chat with the father of the family - about their performance. Now known as the “annual discussion”.

To avoid any hiring frenzy - Slaughter and May increased their junior associate’s salaries by 20% this year.

Linklaters has had 21 London Partners leaven for US firms over the past two years. It’s not nearly that bad for Slaughters, largely because they do not have a big private equity practice.

The firm’s cultivating its stable of blue-chip clients including GSK, Diago and Rolls Royce. Over the past year, it also advised companies like Vodafone, Google and BHP.

Kirkland & Ellis and A&O Shearman are advising Northvolt

Kirkland & Ellis and A&O Shearman are advising Swedish battery maker Northvolt as it enters Chapter 11 restructuring proceedings, with a court filing stating that a total of $5.84bn in total funded debt obligations has left the company in a dire liquidity position.

Northvolt said in a statement that the restructuring will allow it to secure approximately $245m in new funding, including $100m in debtor-in-possession (DIP) financing from its existing customer, Swedish truck manufacturer Scania, along with $145m in cash collateral.

The Chapter 11 filing follows unsuccessfully efforts to secure liquidity over the past few months, including a $154m bridge facility in August. In September, Northvolt explored its options and received $50m from its shareholders. However financial conditions continued to deteriorate until the company’s position became unsustainable.

Charles Russell Speechlys expands in Europe

CRS has expanded its European footprint with the launch of a new office in Milan. Cristiana Felisi, formerly of counsel at Maisto e Associati, joined as a partner and head of the Milan office, while Giovanni Angelini also makes the move from Maisto e Associati to join as counsel.

This expansion comes as two other firms make moves in Europe, with HSF and Simpson Thacher each announcing a new office in Luxembourg this week.

Commercial News: The Latest Insights You Need to Know! 📈

UK dealmaking activity accelerated this week!

The announcement of four takeover offers worth a total of £5.3bn, underlining the country’s position as Europe’s foremost destination for mergers and acquisitions this year.

1. The board of TI Fluid Systems, a FTSE 250 car parts manufacturer, recommended that shareholders vote in favour of a £1bn offer from Canada’s ABC Technologies, which is backed by Apollo Global Management.

2. A £701mn bid by Macquire for waste-management group Renewi on Thursday.

3. A £351mn purchase of pub and restaurant chain Loungers by Abu-Dhabi-backed Fortress Investment Group.

4. Direct Line also said it had rejected a £3.3bn bid from larger rival Aviva, promoting the FTSE 100 insurer to approach shareholders about its offer.

   According to Dealogic data, the value of mergers and acquisitions involving UK companies, whether buying or selling, has hit $306.3bn this year, a 57% increase from the same period last year.

However, the uptick in M&A activity may allay concerns of a slowdown under Kier Starmer’s government which has frustrated businesses with last month’s £40bn tax-raising Budget.

How the car industry is exposed to Trump Tariffs

GM, Ford and Chrysler owner Stellantis will be among the carmakers hit hardest by Donald Trump’s pledge to impose tariffs on imports from Mexico and Canada, according to analysts.

the threat to America’s three biggest carmakers stems from the complex, cross-border supply chains the global auto industry has developed over the past four decades.

Since Trump announced the plans this week to impose tariffs of 25% on imports from Mexico and Canada, the executives and analysts have been trying to work out the potential damage to an industry already confronting weaker demand for electric vehicles.

Which global carmakers are the most exposed?

How could companies soften the blow from the tariffs?

Carmakers could boost US production, and absorb the financial hit by cutting costs and raising prices.

Legal Lingo Unpacked: Your Quick Terminology Breakdown! ⚖️

Chapter 11

Chapter 11 is a form of Bankruptcy that involves the court-supervised reorganisation of a debtor’s assets and liabilities. It is most commonly used by businesses and is also referred to as a reorganisation bankruptcy.

Chapter 11 is named after a section in the U.S. Bankruptcy Code. Companies that file Chapter 11 do so in order to obtain time to reorganise and make a fresh start.

The court helps businesses restructure its debts and assets. In most cases, the company can continue to operate. Many large US companies have filed Chapter 11 to stay afloat. They include well-known names like General Motors, United Airlines, and Texaco.

A debtor - debtor in possession - can run the business as usual. However, in cases involving dishonesty, fraud, or gross incompetence, a court-appointed trustee will step in to run the company throughout the bankruptcy proceeding.

The business is not allowed to make certain decisions, such as the sale of assets, without the court’s permission.

Chapter 11, allows businesses the chance to propose a reorganisation plan. This includes downsizing business operations to reduce expenses, as well as renegotiating debts. In some cases, plans will involve liquidating all assets to repay creditors.