Insolvency, Financial Restructuring

During more than 14 years experience in this field, the attorneys of DUNOVSKÁ & PARTNERS participated as legal advisors in restructuring many risk credits of important Czech companies where creditors' exposures reached billions of Czech crowns.

 

  • Legal advisory to Česká spořitelna in the analysis of credit and security documentation for a company engaged in the production of special purpose industrial machines, equipment and production lines. Assistance in the acceleration of the loan, the realisation of pledge on commercial receivables and management of the collection of pledged receivables.
  • Legal advisory and representation of ČSOB in a complex case involving advance payment and performance guarantees issued by the bank based on the instruction of a major local engineering company in the energy sector, representation of the bank in the lawsuit with the beneficiary of the bank guarantees regarding the performance of the guarantees, non-compliant demand for payment. The proceedings ended with the firm´s success in appeal of the beneficiary to the Supreme Court of the Czech Republic, which overturned the decision of the Court of Appeal, agreed with the firm´s legal opinion and rooled in favor of the bank against the beneficiary of the guarantees. The beneficiary filed complaint to the Constitutional Court which was refused.
  • Legal advisory to Česká spořitelna on the protection of the bank´s legal risks related to M&A at the bank´s client – a manufacturing company. Drafting the Termsheet on the joint sale of shares issued by the company and assignment of the bank´s receivables towards the company. Preparation and negotiation of the shares purchase agreement issued by the company and the agreement on the assignment of the bank´s receivables towards the company. 
  • Legal advisory services to the debt crowdfunding platform Investcrown (previously NEBANKA), in the case of complex restructuring of loans in excess of CZK 100 million granted in connection with the acquisition of a food processing company. Analysis of loan and security documentation, negotiation with the investor, structuring the transaction, preparation of transaction documentation.
  • Legal advisory to ČSOB Factoring in a problematic case of factoring finance analysing the factoring documentation, assistance in recovery of debt under the factoring agreement in the process of a coordinated restructuring of the client's bank and factoring financing in connection with controlled divestments of the client's assets. Preparation of the restructuring documentation.
  • Legal assistance to Česká spořitelna in the sale of its debtor´s surplus assets, including the preparation and drafting of contractual documentation and the settlement of the purchase price and post-closing advice.
  • Comprehensive legal advice to Česká spořitelna on the recovery of loan receivables in the amount of CZK 50 million from the bank´s client, a company operating in the field of fashion, production and sale of clothing. Representation of the bank in negotiation with the debtor on the possibility of reorganization, preparation of the insolvency application, representation in insolvency proceedings. Organization of the tender for sale of the bank´s receivables, preparation of data room for the due diligence, and transaction documentation for the sale of the receivables. Advice on the sale of inventories, including communication with potential investors. Representing in the enforcement of claims towards avalists of the security promissory vote, including the preparation of applications in respective insolvency proceedings.
  • Comprehensive legal advice to Česká spořitelna in the recovery of loan receivables in excess of CZK 170 million from KARA Trutnov, a.s., a traditional manufacturer of fur textiles. Legal advice and negotiations in pre-insolvency proceedings, preparation of the bank's application for insolvency proceedings, representation in the interim credit committee, organization of tenders for the sale of bank receivables, provision of data room and preparation and negotiation of transaction documentation, post-closing advice.
  • Legal advisory to Česká Spořitelna in the analysis of a credit and security documentation of its client – a company engaged in the supply of agricultural feed. Advisory included the representation of the bank in negotiations with the debtor, assistance in acceleration of the loan, realisation of pledge on commercial receivables, enforcement of a promissory note, and challenging ineffective legal acts of the debtor and persons providing security.
  • Representing a group of major domestic banks (ČS, ČSOB, KB, SBCZ, UCB) in the process of restructuring their credit facilities to companies operating in the promotional and gift market, including the preparation of Standstill Agreement concluded between the borrower and all financing banks and including the revision of credit and collateral documentation.
  • Comprehensive legal services for ČSOB in the process of filing claims in insolvency proceedings since 2008. We review approximately 160 insolvency filings per year as part of this advisory service.
  • Preparation of sample contractual documentation of major industrial company assignment of receivables and unilateral set-off, including notice of assignment.  
  • Legal opinion for ČSOB regarding assessment of the legal consequences of the reorganization of the bank´s client (a company operating in the field of investment units, services and products for energy and industry) and assessment of legal impacts of the reorganization on claims of the bank towards the client from financing facilities.
  • Legal advisory to ČSOB Factoring in a problematic case of factoring finance analysing the factoring documentation, assistance in recovery of assigned receivables and in the successful process of negotiating with the debtor (a major shipping and logistics service provider), who had previously refused payment. Preparation of the declaration of accession to debt and the notarial deed with direct enforceability.
  • Advising client, the leading retailer of sporting goods and equipment, on the exiting Polish market in the manner of a controlled liquidation of local stores or the sale of selected stores to investors, including representation in negotiations with landlords of retail premises and coordination of legal advice with a partner Polish office.
  • Comprehensive legal service for ČSOB regarding the sector of SME non-performing loans - analysis of credit and collateral documentation with the aim of recommending further actions by the bank including recovery of receivables from debtors and persons providing collateral in execution, insolvency and bilateral disputes, exercise of rights under the bills of exchange.
  • Legal advice and representation of Česká spořitelna in analysis of credit and security documentation of a company providing IT solutions and professional services, loan acceleration, realization of a lien on trade receivables, exercise of rights under the bills of exchange.
  • Legal assistance to HSBC Continental Europe with regard to its loan exposure towards a leading global producer of heavy machine tools, revision and drafting of new loan and security documentation (almost all types of security involved). Advisory to the bank on the most feasible method to implement debtor’s request to use a new bank to service its financing needs which comes with necessity to carve out certain pledged assets and to amend the loan agreements to accommodate the debtor’s request.
  • Legal assistance to a factoring company in problematic case of factoring financing analysing the factoring documentation with a hospital and supplier relations between the hospital and its debtor. Legal advice regarding recovery of the debt under the factoring agreement, negotiation with potential investors regarding sale of ČSOBF's receivables against the hospital and negotiation of out-of-court settlement between ČSOB Factoring and the hospital.
  • Legal advisory to ČSOB regarding the restructuring of a EUR 30 million (approx. CZK 762 million) loan exposure to a group operating in the construction and technology supplies sector. Analysis of the restructuring plan, analysis of risks and impacts of the envisaged restructuring on the bank’s loan receivables, including security thereof.
  • Legal advice to Česká spořitelna regarding recovery of the loan receivables in the amount of approx. CZK 310 million from a debtor, an important company which faces insolvency. Drafting of insolvency petition and registration of claims, representation in creditors committee, recovery of the pledged receivables from the loan and foreign sub-debtors.
  • Representation of Sberbank CZ in work out of the bank´s largest exposure (CZK 650 million) to two real estate development companies building a luxury residential complex. Filing application for insolvency and successful registration of all the bank’s claims and security. Representation of the bank in the Creditor’s Committee and cooperation with the receiver in the process of finalising construction of the project, and sale of the flats. The project proceeds successfully and the bank´s exposure is reduced substantially up to CZK 60 million.
  • Legal assistance to Česká spořitelna with restructuring loan exposure of CZK 160 million towards a company specialising in landscape, subterranean and mining constructions (credit line for overdraft, revolving loan and guarantees) together with exercise of security. The Firm has taken over representation in insolvency proceedings.
  • Legal advice to Česká spořitelna with regard to restructuring and recovery of claims in the amount of app. CZK 127 million from a loan agreement to a construction company (in a bankruptcy situation), legal analysis of possibilities of using cash collateral and escrowed funds; representing the bank in insolvency proceedings including the creditors´ committee.
  • Legal advisory to HSBC Continental Europe regarding its loan exposure from non-recourse factoring provided to a client – a leading European company engaged in distribution and wholesale of mobile phones.
  • Continuing representation of ČSOB in bankruptcy proceedings against a company trading in arms and military material and acting as Chairman of the Creditor’s Committee. Part of the bank’s exposure was already paid in partial distributions of the proceeds of the bankruptcy estate realization. The case is complicated by dispute between the receiver and the Slovakia, which claims ownership rights to substantial part of the bankruptcy estate.