FoxMandal Little’s Delhi office has paid its fee-earners the salaries it owed them, after the firm was unable to pay for two months due to cash flow difficulties.

Long delays in recovering fees has become an increasing a problem for law firms whose clients are caught in the credit crunch, most recently preventing FoxMandal Little in Delhi from paying some of its staff their salaries.

“Lock-up is a big issue for most firms these days in particular collections on long-overdue invoices,” says Kerma Partners legal consultant Friedrich Blase in New York and adds: “It’s become harder for firms to collect on the work produced.”