Successful completion of restructuring
In January 2015 we finalized the long-term restructuring of an investment loan provided by our client Sberbank CZ, a.s. for a development project (approx. 100 family houses in Jenštejn near Prague). The project was impacted negatively by the real estate crisis as well as lawsuits initiated by third parties which blocked the transfers of the real estate at the cadaster. Despite continued efforts the inanced real estate was not sold in several tenders organized in cooperation between the bank and the debtor throughout the years, however in the end the bank was able to minimize its losses by selling the loan receivable to an investor for a favorable price.
We provided the bank with comprehensive legal assistance during the restructuring and final sale of the receivable (drafting of the loan and security documentation, drafting of the contractual documentation for the real estate sale tenders, drafting of the assignment agreement etc.) and participated actively in the negotiations with representatives of the debtor in order to secure the maximum return to the bank and to minimize risks related to the transactions.