The Europe and Middle East offices of King & Wood Mallesons (KWM) may have to split from the firm after partners in those offices rejected a proposed recapitalisation programme, according to media reports.

Following six months of crisis talks, the firm had proposed a 14-million-pound ($17.5 million) partner-funded lifeline to cover its debts, which are believed to be in excess of 25 million pounds. 

According to reports, only 20 per cent of regional partners were willing to put cash into the firm and commit to a 12-month lock-in. In a press statement, KWM said, "regrettably, insufficient value of new capital was committed.”