CEE Legal Matters

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  • AstapovLawyers Hires New Director of Strategic Development

    Artem Atepalihin has joined AstapovLawyers as a Director of Strategic Development. According to AstapovLawyers, Atepalihin will be responsible for strategic planning, analyzing, and monitoring the legal market, as well as establishing and maintaining partnerships with clients and public authorities.

    Prior to joining Astapov, Atepalihin held the position of Director of Partnership Programs and Investments at BitBank, as well as working as an advisor to the Deputy of Verkhovna Rada of Ukraine and taking part in the adoption of the “On E-commerce” Law of Ukraine. He graduated from the Academy of Labor and Social Relations Faculty of Law and the National Agrarian University Department of Land Management. In addition Atepalihin completed training programs at School of Political Excellence, Master of Political Management and the School of Political Technologies PolitPR. Atepalihin is a member of the Ukrainian Bar Association, and is a Deputy Chairman of the legal practice committee at the UBA and member of the UBA Legal Assembly.

    Managing Partner Andrey Astapov said: “We are happy to welcome Artem to our team. The decision to have a dedicated person to the strategic development will help us spot opportunities on rapidly changing legal market. We are committed to the highest standards in the legal sphere, and Artem’s role will enable AstapovLawyers to better meet the needs and expectations of Ukrainian and international companies.” 

     

  • LKT Advises Sanoma on Withdrawal from Hungary

    Lakatos, Koves & Partners has advised Sanoma on the sale of Sanoma Media Budapest, a leading magazine and online publisher in Hungary, to Central Group.

    Sanoma and Central have signed a sale and purchase agreement on the sale of Sanoma Media Budapest group. The closing of the deal is subject to the approval of the competition authorities. This transaction marks the departure of Sanoma from the Hungarian market.  

    Sanoma is a European media and learning company listed on the NASDAQ OMX Helsinki stock exchange. Its main markets “in learning” are Belgium, Finland, the Netherlands, Poland and Sweden. In 2013, Sanoma’s net sales totaled EUR 2.1 billion, and the net sales for its Hungarian media operations totaled approximately EUR 60 million. Sanoma estimates that it will book at the closing a non-recurring capital gain of around EUR 11 million. The company claims that the divestment is, “in line with Sanoma’s strategy to focus its operations and divest selected ownerships.”

    LKT Partner Richard Lock and Associate Peter Peremiczki worked on the deal.

     

  • White & Case Advises on Refinancing of Xella International

    White & Case has advised the international bank syndicate led by BNP Paribas as Mandated Lead Arranger on the refinancing of a part of the liabilities of Xella International.

    At the heart of the refinancing is a new EUR 325 million secured notes issue by Xella financing vehicle Xefin Lux, arranged by BNP Paribas (Lead Left) and Goldman Sachs as Joint Global Coordinators.

    Xefin is using the proceeds of the issue to fund a new credit tranche under Xella’s existing credit agreement, primarily for the early repayment of the credit tranche previously granted to Xella by Xefin. At the same time, it proved possible to indirectly redeem the Senior Secured Notes issued in 2011. As in the case of the 2011 issue, the holders of the new notes are participating indirectly in the security provided for the credit agreement.

    Xella is one of the Europe’s largest manufacturers of aerated concrete, high quality dry lining applications and lime. Its products are marketed in more than 30 countries under the brand names Ytong, Hebel, Multipor, Silka, Fermacell and Fels. Xella employs around 6,800 people in 20 countries.

    The advice in this matter was provided against the background of a working relationship established over many years. White & Case Partner Leila Roder said: “We advised the financing banks in 2011, when the concern was how to integrate the Senior Secured Notes into the existing financing and security package. In this case, too, we were ideally positioned and able to provide advice in a total of ten jurisdictions, thanks to our experience with bank/bond financing and our global network.”

    The White & Case team was led by Partner Leila Roder and Local Partner Matthias Bochum, supported by Associate Charlotte Kreuzberg and other lawyers in White & Case offices in France, the UK, Poland, Slovakia, the Czech Republic, and Hungary.

     

  • Ukrainian Lawyers Now Potentially Able to Practice in England and Wales

    Ukrainian lawyers have obtained the right to apply for permission to practice in England and Wales. According to Valentyn Gvozdiy, the Deputy Chairman of the Ukrainian National Bar Association, the UNBA has successfully obtained access for Ukrainian lawyers to the Qualified Lawyers Transfer Scheme (QLTS), which — if successfully passed — would qualify them as lawful solicitors in England and Wales.

    The QLTS is administered by the Solicitors Regulation Authority in England, which is responsible for regulating the professional conduct of more than 125,000 solicitors and other authorised individuals at more than 11,000 firms, as well as those working in-house at private and public sector organizations. The QLTS scheme opens up the legal market in England and Wales for lawyers qualified in other countries, and now Ukrainian lawyers have access to it as well. 

    According to a press release on the subject by Vasil Kisil & Partners (VKP), “in the past in order to structure international transactions and provide international litigation support Ukrainian companies were forced to involve teams of international legal advisers, which included Ukrainian lawyers and lawyers advising on Ukrainian law, as well as representatives of British law firms, without whom it was not possible to ensure proper client representation in England and Wales. Now Ukrainian lawyers have an opportunity to be recognized as lawful solicitors in England and Wales subject to the successful passage of QLTS scheme exam.”

    The QLTS is a series of tests for the license to practice as solicitor in England and Wales designed for foreign-licensed attorneys making the qualification process faster than the standard procedure. The QLTS system ensures that a lawyer, admitted to the Bar in another jurisdiction, has the necessary knowledge and skills to act as a qualified solicitor in England and Wales. VKP Partner Anna Babych, herself a Member of the International Relations Committee of the Ukrainian National Bar Association, explained that the QLTS assesses the knowledge of English law and lawyer skills. The exam can be taken twice in a year. The total cost including paperwork is about GBP 4000. According to Babych, “this tool will allow one to become a qualified solicitor and practice law in England and Wales, which opens new opportunities for professional development of Ukrainian lawyers and for their clients as well.”

  • Specht Bohm Partner at ICDR Panel

    Specht Bohm Partner Erhard Bohm has been appointed member of the panel of international arbitrators of the International Centre for Dispute Resolution in New York.

    According to the firm, “the invitation was preceded by an extensive review process that included a rigorous look at Erhard Bohm’s international expertise and reputation.”

    The ICDR is the international division of the American Bar Association. Established in 1996, the ICDR provides dispute resolution services in more than eighty countries. Through a worldwide panel of independent arbitrators and mediators, it provides a flexible, party-centered process over a broad range of industries and geopolitical issues.  

    Erhard Bohm is a dual-qualified Austrian and English lawyer who specializes in International Commercial Arbitration, International Treaty Arbitration, and other firms of International and Commercial Law. He is a member of, among others, the ICC Arbitration Commission, the Austrian Arbitration Association, the Swiss and Swedish Arbitration Associations, the German Arbitration Institute, and the International Bar Association.

     

  • Sayenko Kharenko Counsel Joins Anti-Corruption Working Group at Ministry of Justice

    Leonid Antonenko, Counsel at Sayenko Kharenko, has been invited to join the anti-corruption legislation section of a working group of the Ministry of Justice of Ukraine.

    The working group combines various sections, all focusing on the development of legislative acts in furtherance of the Activity Program of the Cabinet of Ministers of Ukraine. 

    Sayenko Kharenko reports that Antonenko is actively involved in projects related to the development of Ukrainian legislation. The firm claims that Antonenko “regularly contributes to forming up a rule-of-law state and legal culture in society, in particular under the auspices of such professional organizations as the Ukrainian Bar Association (UBA) and the European Business Association (EBA).”

     

  • Liniya Prava Defends Sberbank in Dispute with Russian Antimonopoly Authority

    Liniya Prava has successfully defended the interests of Sberbank of Russia in a dispute against the Russian Antimonopoly Authority (Department of FAS) in the 15th Arbitrazh Court of Appeal.

    The firm persuaded the 15th Arbitrazh Court to deny the appeal of the Department of FAS for the Rostov Region against a decision by a court of first instance stating that the antimonopoly authority’s complaints for loan repayment through annuity payments were illegal, as groundless.

    In 2012 the Department of FAS for the Rostov Region found that Sberbank of Russia had violated sub-p.3, p. 1, cl. 10 of the Russian “On Protection of Competition” Law, which prohibits the imposition of unfavorable contract terms, and obtained a remedial order. During their initial consideration, the court of first instance and court of appeal supported the antimonopoly authorities. However, the FAS for the North Caucasus sustained a cassation appeal prepared by Liniya Prava lawyers and referred the case to a first instance court for reconsideration. There, the efforts of Liniya Prava lawyers Vadim Novikov and Svetlana Avdasheva, as well as the economists and sociologists the firm engaged as experts, resulted in full satisfaction of Sberbank of Russia’s claim to invalidate the antimonopoly authority’s decision and order, by the decision issued by the Arbitration Court for the Rostov Region that reconsidered the case.

    Alexey Kostovarov, the Liniya Prava Senior Associate who represented Sberbank of Russia before the courts, said that the order of the court of appeal was predictable: “Lack of grounds in the antimonopoly authority’s claims is quite evident, the first instance court has reasonably confirmed this fact, thus, we could not expect any other order from the court of appeal. It is common practice in the lending market to repay loans through annuity payments, therefore, the courts did not have any grounds for finding such practice illegal. We are glad that the courts have looked into peculiarities of loan repayment options and supported the Bank that, for the most part, defended the interests of the whole banking sector and common borrowers rather than its own interests. We hope that the cassation court will draw a line in this case supporting its colleagues from the lower courts.”

     

  • Dentons and CMS Advise on AFI Palace Cotroceni Refinancing

    The Israeli AFI Europe Group has signed a EUR 220 million financing agreement with a consortium of banks for the refinancing of the AFI Palace Cotroceni commercial center in Bucharest. 

    AFI was advised by Dentons, while the consortium of banks, consisting of Deutsche Pfanbriefbank, Erste Group Bank and Raiffeisen Bank, was advised by CMS Cameron McKenna. 

    David Hay, Executive Director of AFI Europe Romania, commented: “We appreciate the trust offered to AFI Europe and AFI Palace Cotroceni through such an important credit line of EUR 220 million. The process was a real challenge, in light of the value of the transaction, the fact that it involved three large banks, and because of the fact that the destination of the project was in Romania. However, as this success shows, it is possible to attract large funds towards Romania for a good project and an experienced developer.”

    At the end of 2007, AFI Europe took a EUR 234 million loan from Hypo Real Estate for the development of the AFI Palace Cotroceni project. On May 25, 2014, the credit was due but AFI Europe was granted an extension of two months. The Israeli owners turned to the bank consortium to refinance the project, consortium which included the Hypo Group. The latter was taken over by the German State in the interim and became Deutsche Pfanbriefbank. The contract was signed for a 5-year period. 

    AFI Palace Cotroceni was inaugurated in November 2009 following a EUR 300 million investment. The total rentable surface of the mall is 81,000 square meters generating a operational revenue for the first quarter of 2014 of EUR 7.3 million (a 6.7% increase relative to Q1 in 2013). Total revenues for 2014 are expected to exceed EUR 29 million. At the moment AFI Palace Cotroceni is valued at EUR 375 million. 

    AFI Europe has been operating in Romania since 2005. AFI Palace Cotroceni was its first project in the market. The company also holds AFI Palace Ploiesti and the AFI Park office complex as well as other retail real estate in Bucharest and Arad. 

    This article is powered by our friends at LegalMarketing.ro. 

    Editorial Note: In a June 24 press release, Dentons announced that the team was led by Partner Oren Harpaz, who works from the Dentons’ Frankfurt and Warsaw offices, Prague-based Counsel Gary Maguire, and Frankfurt and Warsaw-based Counsel Nir Assido.

     

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  • Lawin Obtains Significant Bankruptcy Decision in Supreme Court

    Lawin has represented AB bankas SNORAS in a dispute with Corvus Holding OU in Estonia in a dispute involving application of the Estonian Bankruptcy Act.

    SNORAS had filed a petition in Parnu County Court seeking to have Corvus Holding declared bankrupt. The court found the petition meritorious, and declared Corvus Holding bankrupt. Corvus Holding then appealed the ruling to the Tallinn Circuit Court, which overturned the Parnu County Court’s ruling, finding that Corvus Holding should not have been declared bankrupt as the claim of SNORAS was unclear. SNORAS in turn appealed to Supreme Court, arguing that the Tallinn Circuit Court incorrectly applied Bankruptcy Act subsection 31 (1) in conjunction with subsection 31 (2). Specifically, SNORAS argued that pursuant to subsections 31 (1) and (2) of the Bankruptcy Act — which entered into force on January 1, 2010 — it is not possible to refuse to declare a legal entity obligor bankrupt when the interim trustee has determined that the obligor is permanently insolvent even without taking into account the claim of the obligee who filed the bankruptcy petition.

    On June 10, 2014, the Estonian Supreme Court ruled that the Tallinn Circuit Court had indeed misinterpreted subsections 31 (1) and (2) of the Bankruptcy Act. The Supreme Court agreed with the position advocated by SNORAS, that upon determining that a legal entity obligor is permanently insolvent, it must be declared bankrupt even if the claim of the obligee who filed the bankruptcy petition is unclear. This decision carries significant meaning in terms of bankruptcy law, as it reverses the previous understanding: that a legal entity obligor is not to be declared bankrupt if the claim of the obligee who filed the bankruptcy petition is unclear.

    Lawin represented AB bankas SNORAS in all court instances. The litigation team consisted of Partner Liina Linsi, Senior Associate Kadri Michelson, and Associate Lembit Tedder.