CEE Legal Matters

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  • Former Tesco GC Takes on Strategic Role With Weberer

    Szabolcs Gall, the former Chief Legal Officer of Tesco Hungary, has moved to Waberer’s International, where he will hold the position of Chief Strategic Officer. 

    Prior to the move, Gall had been with Tesco for little over 2 and a half years. Before joining the retailer in 2011, he was the Chief Legal Officer & General Counsel of Invitel between 2009 and 2011, preceded by half a year spent with General Electric as Senior Counsel. Gall spent 8 years with the Budapest office of Clifford Chance before moving in-house. 

    With a fleet of more than 3,000 truck-trailers, Waberer’s International is a Central and Eastern European-focused logistics company, originally founded in Hungary in 1948 as the Volan Tefu State Company. In 2011, Mid Europa Partners purchased 49.05 per cent share in the Waberer’s Holding Logistics, Volan Tefu’s legal successor as of 2004. As of March 1, 2012, four companies of Waberer’s Group – Waberer’s International, Delta Sped, Interszervíz, and Inforatio – merged with Waberer’s Holding to form Waberer’s International.

     

  • KSB Represents Karlovarske Mineralni Vody in Successful Suit

    Kocian Solc Balastik has represented Karlovarske Mineralni Vody in a successful lawsuit to cancel a penalty imposed on KMV by the State Preservation and Landmark Authority for an alleged administrative offense. 

    The penalty imposed by the Landmark Authority related to the Authority’s findings that that KMV had failed to look after, maintain and protect historic buildings in the municipality of Kyselka, in the Czech Republic. KSB filed an administrative lawsuit against the Landmark Authority’s decision on KMV’s behalf at the Regional Court in Plzen, which cancelled the penalty on January 31, 2014 and returned the case to the Landmark Authority for new proceedings. The Landmark Authority then filed a cassation complaint at the Supreme Administrative Court in Brno seeking remedy against the Regional Court’s ruling. The Supreme Administrative Court upheld the original decision to cancel the penalty.

    In its reasoning, the Supreme Administrative Court pointed out that, while the Landmark Authority had stated in its reasoning that the KMV had committed acts that it classified as “delinquency”, it had not referred to the term in the decision itself, and thus the penalty it imposed violated the principle that punishment can be imposed only for deeds listed in the text of the decision. 

    In a statement released by KSB, the firm stated that “simply put, the owner of the building was punished for something which it did not commit according to the decision.” It continued that, “the Landmark Authority inadmissibly simplified the administrative proceedings since if it said delinquencies were included in the decision it would be obliged to describe the particular deeds and, primarily, would have to prove that KMV actually committed such deeds. By failing to do so, the Landmark Authority substantially limited KMV’s right of defense.”

    The case has been returned to the Landmark Authority for re-consideration. 

     

  • Dutch Court Ruling in Yukos v Rosneft Case Due by August 27

    An Amsterdam district court ruling in the Yukos International UK BV USD 333 million case against Rosneft is expected by August 27, RIA Novosti reported Friday citing the Russian company’s statement.

    Yukos International filed a lawsuit against Rosneft and other unrelated defendants with the Court of Amsterdam District. The plaintiff demanded compensation of up to $333 mln plus interest for the period from February 7, 2011, plus expenses.

    The company claims that it incurred losses due to the freezing of its bank account as a result of a 2008 court ruling regarding Yukos’s bankruptcy and liquidation.

    The first court hearing in the case was held on June 27, 2012. Rosneft filed an exception to the lawsuit claiming that the court ruling to freeze the account was justified. The company also claims that Yukos International did not incur any losses as it deposited its funds in an interest-bearing account it selected.

    Yukos International filed a statement in response on February 20, 2013. Rosneft did the same on May 15. The hearing on the merits took place on January 9, 2014. At the hearing, Yukos International was allowed to make changes to its claim. On February 26, Rosneft presented a reply to the new claim.

    This article is powered by our friends at RAPSI.

     

     

  • Lakatos Koves & Partners Advises BayernLB on Sale of MKB Bank

    On July 24, 2014, Bayerische Landesbank (BayernLB) issued a press release announcing that it is set to sell its Hungarian subsidiary bank, Magyar Kereskedelmi Bank (MKB), to the Hungarian government. BayernLB is being advised by Lakatos, Koves & Partners.

    In return for the purchase price of EUR 55 million, BayernLB will waive EUR 270 million in claims due from MKB. According to a statement released by the Hungarian Ministry for National Economy, “the current owner has agreed to sell 99 percent of MKB shares to the state of Hungary and increase capital by EUR 270 million prior to the transfer.” As a result of the deal, BayernLB will be fulfilling all of the EU’s main requirements regarding disposals of investments, noting in its statement, “and well before the deadline at that.” (The deadline for the disposal is the end of 2015.) The deal is set to close by September 2014.

    On the deal, State Minister Dr. Soder, commented on behalf of the Free State of Bavaria, which is one of the owners of BayernLB. “The negotiations were tough, but fair. In the end, we were successful with the most important issues. As opposed to other sales, there will be no outstanding sums and so the Hungary chapter will be closed for good. By doing away with this legacy, BayernLB is cleaning up its past some more.”

    Dr. Ulrich Netzer, President of the Association of Bavarian Savings Banks, also viewed the transaction positively: “BayernLB is shedding a legacy asset in the interest of its owners. Now it can focus more closely on its core business and continue expanding it with the Bavarian savings banks.”

    BayernLB’s CEO, Johannes-Jorg Riegler, said, “The MKB sale is a huge relief for us. It will put an end to a difficult chapter in our Bank’s history and let us focus on the future. BayernLB has reached quite a lot of milestones in recent years and is well on the way towards becoming Bavaria’s customer-oriented bank, serving the German economy. In the months and years ahead we will continue to work hard in using our excellent customer base to achieve long-term profitable growth.”

    The announcement of the Hungarian Ministry of National Economy asserted that: “The Hungarian banking sector requires a significant overhaul, as the financial crisis has made it clear that the ownership structure of the banking sector cannot be considered to be neutral from the aspect of financial stability and lending. The foreign owners of Hungarian subsidiaries have during the crisis withdrawn massive financial resources from the country which measure adversely affected forint stability while it caused lending to Hungarian companies to come to a near standstill. As a consequence, a mainly foreign-owned banking sector is not only slowing recovery, it is deepening the crisis through the withdrawing of resources.” It further stated that the purchasing price, “does not constitute a large burden on the state budget” and that, “the Government endeavors to turn MKB into an active and profitable bank, therefore retaining current and increasing the number of future customers is a priority.”

     

  • US Court Has Jurisdiction Over Accused Russian Hacker

    A court in Guam has personal jurisdiction over Russian national Roman Seleznev who was arrested in the Maldives and brought to the US to stand trial in cash register systems hacking case, according to the memorandum filed by prosecutors with the court and obtained by RAPSI.

    “The Supreme Court [of the US] has held that personal jurisdiction in a criminal case is established by the simple fact of the defendant’s presence before the court, regardless of how that presence was secured,” the document reads.

    The memorandum was filed in response to Seleznev’s motion to dismiss the case and set him free. The defense team of Seleznev claim that he was seized by US Secret Service agents and whisked away to the US in violation of the US and international law. Seleznev’s attorney Pat Civille believes that his client’s presence in the US court has not been lawfully procured.

    In the meantime, the Russian Foreign Ministry claimed that Seleznev was abducted.

    Seleznev, 30, faces charges of hacking into retail point-of-sale systems to install malicious software to steal credit card numbers and with operating servers and international carding forum websites to facilitate the theft and sale of stolen credit card data.

    An arrest warrant for Seleznev was issued by the US District Court for the Western District of Washington in 2011. The prosecutors insist on Seleznev’s removal to the Western District of Washington for trial on a pending indictment.

    “Because this Court has been provided a reliable copy of that indictment and accompanying arrest warrant (ECF No. 1 [attachments]), the only remaining issue is the question of identity, i.e., whether Seleznev is “the same person named in the indictment,” the memorandum reads.

    This article is powered by our friends at RAPSI.

    fotocredits: RAPSI

     

     

  • Schoenherr Advises Nuclearelectrica on Selection of Strategic Investor

    Schoenherr is advising Romania’s state-owned nuclear power company, Nuclearelectrica, in the process of selecting the strategic investor for developing units 3 and 4 at the Cernavoda nuclear site in Romania.

    The project is part of the strategy of the Romanian government to transit to a low carbon economy. The two new units at Cernavoda are envisaged to produce 1400 MW of electricity, around 20% of Romania’s current demand. 

    The Cernavoda power plant was designed by Atomic Energy of Canada Limited in the 1980s, and was contracted during the Communist era. The initial plan was to build five units, but at the moment only Units 1 and 2 are operational. 

     

  • Liniya Prava Advises Sberbank of Russia on Domestic Bond Program

    Liniya Prava has been selected by Sberbank of Russia’s Tender Committee to render legal support in relation to the establishment of a Domestic Bond Program for Sberbank of Russia. 

    According to a Liniya Prava press release, “the establishment of Domestic RUR Bond Program will allow investors in Sberbank of Russia to obtain the minimum guaranteed coupon rate and a potential additional income that will depend on the market variations of one or more derivatives for a large pool of assets.”

    Liniya Prava reports that its lawyers will render legal support on 34 bond issues with an overall volume of RUB 50 billion, including structuring the transaction, drafting all necessary documentation, reviewing the purchase of bonds by the issuer, advising on disclosure, issuing a legal opinion, compiling a transaction bible, and providing other on-going project advice.

    As reported by CEE Legal Matters on April 28 and June 23 of this year, Liniya Prava has advised Sberbank on antimonopoly matters as well.

     

  • Baker & McKenzie Advises Finansbank on Financing for Peska/OTK Group

    Esin Attorney Partnership, the Turkish member firm of Baker & McKenzie International, has advised Finansbank on two loan facilities for a tourist development project in Turkey. The loan facility agreements are designed to support an elite tourist project development on Turkey’s Aegean coast.

    Esin and Baker & McKenzie advised Finansbank in relation to a USD 11,500,000 term loan facility for OTK Insaat Danismanlik’s (OTK Construction) acquisition of Peska Turizm Yatirimlari and a USD 10,000,000 term loan facility for financing Peska Tourism’s project development on the southwest Aegean coast of Turkey. The deal was signed and closed on June 14, 2014.

    Finansbank, one of Turkey’s largest private banks, was established in 1987, and has 674 branches and more than 14,000 employees. OTK Construction and Peska Tourism are tourism companies operating tourist facilities in Turkey. 

    Esin Banking & Finance Partner Muhsin Keskin and Real Estate Partner Birturk Aydin advised Finansbank, along with Baker & McKenzie Global Head of M&A Simon Hughes and Banking and Finance Partner Mazen Boustany. They were supported by Istanbul-based Associates Erdem Sismangil, Berk Cin, and Sadi Oz, London-based Associate Matthew Vaghela, and Dubai-based Associate Muhammad Syamsulfaiz.

    “This transaction was complex for a number of reasons, especially because we were negotiating a project financing facility and security package of a borrower our client had not yet acquired while we were struggling with the financial assistance restrictions brought up two years ago. Also, the transaction required the combination of the capabilities of four different practice groups including Banking & Finance, M&A, Real Estate and Corporate across three offices” said Muhsin Keskin.

  • Sorainen Helps Lithuanian Actress Remove Fake Account from Facebook

    Sorainen in Lithuania has helped actress and singer Inga Jankauskaite assert her rights following the misappropriation of her identity on Facebook.

    The actress sought to delete an unauthorized account created in her name, which had more than 1,000 “friends”, and which the firm claims “shaped public opinion, and provided misleading information to the real friends and fans of the actress.” Based on its conviction that “these acts violated Inga Jankauskaite’s right to a name and the right of personal portrayal protected by the Lithuanian Civil Code and the European Convention on Human Rights,” the Sorainen lawyers representing the actress took unspecified legal action, and the account was deleted.

    The firm claims that, under the Lithuanian Civil Code, the actress had a potential claim for pecuniary and non-pecuniary damages for violation of the right to a name and the right of personal portrayal, but the actress’s primary goal was simply to have the unauthorized account deleted and to stop the unlawful use of her name and image, and it appears no such claim is being made.

    The popular actress was represented by Sorainen Partner Renata Berzanskiene, Senior Associate Vyte Danileviciute (the Head of the firm’s Communication, Media and Technology Sector Group), and Associate Laurynas Ramuckis.

     

  • Hengeler Mueller Advises Opel on Single OEM Structure in Europe

    Hengeler Mueller has advised the newly-established Opel Group in its assumption of full responsibility as the lone original equipment manufacturer for the Opel/Vauxhall business in Europe, including Russia.

    The firm advised Opel together with the in-house General Motors Europe legal team on the transaction. In addition to Germany, Opel has plants in Poland, Russia, Hungary, England, Spain, and Switzerland.

    The Hengeler Mueller team included Partners Ingo Klocker, Hans-Joachim Liebers, and Hendrik Bockenheimer, as well as Associates Maximilian Clostermeyer and Christian Hausser.