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.

 

  • 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 a Standstill Agreement concluded between the borrower and all financing banks and including the revision of credit and collateral documentation.
  • 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, exercising rights under 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, exercising rights under bills of exchange.
  • Legal assistance to HSBC 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). In 2019 we assisted the bank with registration of amendments to the security documentation stemming from the sale of the enterprise of Czech HSBC Branch from UK subsidiary to France subsidiary (implemented due to uncertainty about BREXIT ramifications). We are also currently engaged in advising 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.
  • Assisted in problematic case of factoring financing analyzing the factoring documentation with a hospital and supplier relations between the hospital and its debtor. We have also assisted in recovery of debt under the factoring agreement, negotiated with potential investors regarding sale of ČSOBF's receivables against the hospital and proposed and we are negotiating of out-of-court settlement between ČSOBF 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 bank’s loan receivables, including security thereof.
  • Legal advice to Česká spořitelna regarding recovery of 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 pledged receivables from loan and foreign sub-debtors.
  • 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 insolvency proceedings, legal assistance with demanding payment of counter-guarantees, representation of the bank in the lawsuit with the beneficiary of the bank guarantees regarding non-compliant demand for payment, representation of the bank in the preliminary injunction proceedings and subsequent lawsuit regarding a claim to return the payment obtained under the counter-guarantee.
  • 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 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 Slovak State, which claims ownership rights to substantial part of the bankruptcy estate.
  • Legal advice in respect of a company dealing mainly with the operation of road motor transport, in the analysis of credit and collateral documentation, together with assessment of the validity and effectiveness of the documentation and the enforceability of the bank's receivables.
  • Legal advice in analysis of credit and collateral documentation of a company specializing in the production of glass fiber materials, including ČMZRB guarantee documents, assessment of the validity and effectiveness of the documentation and enforceability of the bank's receivables, risk warnings, proposals for documentation modifications.
  • Legal advice in analysis of credit and collateral documentation of a company specializing in the production of automotive parts and a wide range of packaging materials. Assessment of the validity and effectiveness of the documentation and enforceability of the bank's receivables, warning of risks, proposals for amendments to the documentation.
  • Legal advice in analysis of credit and collateral documentation of a company engaged in the production of medical equipment, electronics, tools. We analyzed the contractual documentation with a focus on its validity and subsequent enforceability of the bank's receivables. Enforceability of the bank's receivables, risk notices, proposals for amendments to documentation.
  • Full legal service to major local bank in registration of claims in insolvency proceedings - since 2008 we provide the bank with full legal service in process of filing of banks’ claims in insolvency proceedings. In frame of this assignment we review approximately 200 applications from the bank each year, in approximate aggregate annual amount over CZK 2 billion.
  • Organizing a tender for sale of unpaid loan receivables of major local bank in the amount of approx. CZK 1 billion, drafting of tender documentation, due diligence process, drafting and negotiation of transaction documentation.
  • Legal advice to major local bank with restructuring loan exposure and security of a leading Czech producer of textiles – analysis of loan and security documentation, Standstill agreement and further representation in insolvency proceedings (registration of claims, membership in creditors committee etc.), assistance with search for strategic or financial investor.
  • Legal advisory to local bank in restructuring of holding structure of a debtor, legal analysis of restructuring impacts on the bank’s position, revision of loan, security and transaction documentation.
  • Analysis of the position and duties of the management of a heating company regarding the performance of the function of a member of the Board of Directors in the light of Business Corporations Act and Insolvency Act.
  • Legal advice to ČSOB Factoring and drafting of an expert opinion for Dutch court proceedings regarding legal regulation of the assignment of receivables in the Czech republic, expert opinion for German lawyers regarding issues of legal error and their consequences in Czech republic.
  • Legal advisory to a Czech fund of qualified investors, managed by Czech investment expert regarding exercise of claims within insolvency proceedings and options for sale of the claim due from the insolvency debtor.
  • Legal advisory and representation to ČSOB Factoring regarding recovery of receivables from Industrial Park Tachov s.r.o. assigned to ČSOB Factoring on the basic of a factoring agreement and legal advisory and representation in defending against the debtor’s requests for return of funds paid on the assigned receivables.
  • Legal assistance to Česká spořitelna consisting of analysis of duties of the bank in connection with the bank´s performance under guarantees issued in the amount of app. CZK 760 million for proper execution of complex renewal of a power station of a major company  dealing with strategic engineering subjects, which is currently under insolvency proceedings.
  • Legal advisory to local bank  regarding restructuring of loan exposure, legal analysis of the loan and security documentation, ownership relations and proposal of solutions within a group of 5 entities financed by the client (hospital, biogas power plant and technology center, photovoltaic power plant, co-operative managing non-residential premises, co-operative engaged in constructing family houses).
  • Legal assistance to Sberbank CZ in restructuring of a loan exposure amounting to almost CZK 100 million (GBP 330 000) of holding of companies operating in ICT, optical and metallic networks and software and IT. Services included proposal for changes and negotiation of new wording of the credit and security documentation and assistance in further legal matters connected with the exposure.
  • Legal assistance and representation of local bank in insolvency proceedings towards companies belonging to the largest forestry and wood industry group in Czech Republic – LESS a.s. and LESS & FOREST s.r.o. The scope of work involved registration of claims, representation in proceedings and negotiation with major creditors on reorganization and the manner in which the insolvency will be resolved. The Firm continues to assist Sberbank CZ as a secured creditor to ensure maximum revenue from the bankruptcy.
  • Legal advisory to local bank in case of non-performing loans of CZK 150 million to companies specialized in project development, construction and maintenance of metallic and optical cable routes. Revision of loan and security documentation, negotiating and drafting a Standstill Agreement amongst the banks and the borrowers. As a result of standstill, the debt is currently successfully restructured.
  • Representation and legal advice to a club of banks including major local bank with restructuring a syndicated credit facility in the total amount of over CZK 700 million. Representation in insolvency proceedings against the company leading to declaration of insolvency and approval of reorganisation of the debtor. The exposures of the banks were subsequently assigned to a strategic investor.
  • Legal advice to a major international company engaged in the sale of energy and petroleum products with regard to their claim in the amount of EUR 3 million against a Czech debtor arising from EFET documents; together with representation of Mercuria in insolvency proceeding; legal advice in a dispute with insolvency receiver.
  • Legal assistance to the most important suppliers of a complete range of bearings with regard to acquisition of loan receivables, due diligence, transaction documentation and legal advisory within insolvency proceedings.
  • Legal advice to local bank in insolvency proceedings against a company which operates in the field of photovoltaics and energy savings; preparation of an insolvency application for the bank´s claims.
  • Complex legal advisory to local bank with restructuring of loan exposure towards Styrotrade group financed by a club of banks consisting of Sberbank CZ, Česká spořitelna and Raiffeisenbank. Assistance in negotiation and subsequent preparation of a Standstill Agreement for the purpose of stabilizing the company and negotiation and drafting of contractual documentation for refinancing which took place on the basis of a syndicated loan facility provided by local banks in the amount of CZK 500 million.
  • Legal assistance to local bank with regard to restructuring banking facilities of CZK 43.5 million provided to a company operating a biomass power plant. Analysis of current loan and security documentation and propose modifications to improve the bank´s position, preparation of amendment documentation.
  • Legal advisory to local bank in the matter of analysis of security documents in the amount of CZK 10 million.
  • Continuous legal assistance to major local bank regarding the restructuring of loan exposure in default to a supplier of porcelain and composite insulators. Redrafting and execution of existing loan and security documentation, preparation execution of a Standstill Agreement and subsequent amendment and extension. The Firm advised the banks on possible exit strategies. The exposures of the banks were successfully fully repaid.
  • Legal advice to major local bank in revision of loan and security documentation of a company engaged in the wholesale distribution of fasteners in the amount of CZK 50 million, collection of pledge receivables of the client.
  • Advice and representation to local bank in respect of restructuring a CZK 100 million loan exposure to a real estate management company. Advice encompasses legal issues concerning transfer of part of the financed assets to an investor and optimal method for enforcement of provided collateral. Restructuring included enforcement of guarantee obligations arising both from action of the law and from a signed promissory note.