Category: Czech Republic

Zdenek Tomicek, Partner in the Czech office of CEE Attorneys, turned first to the intended amendment to the Execution Procedure Act proposed by the Czech Ministry of Justice, which could oblige creditors to provide monetary guarantees of costs of the Court Executor in the proceedings — which would then be forfeited if execution turned out to be impossible.

“I understand the reason for this amendment, but the problem is,” Tomicek said, “this will also be applicable to B2B creditors, who are not always aware of debtor assets and public sources are very limited with this respect.” As a result, creditors who win their claims — which should, after all, put them in a better position — will have to provide guarantees to the executors, providing additional risk to them.

Tomicek said this will, on top of everything else, have a significant effect for lawyers and law firms who also provide debt collection services, who will have to explain to clients that yet another fee is required of them.

Tomicek also agreed with previous The Buzz sources who expressed frustration with the Czech judiciary, noting that judges — especially at the lowest level — are simply not regularly trained, and from time to time fail to refer to the judicial practice of higher courts in reaching their verdicts. Tomicek rolled his eyes, saying “sometimes it’s frustrating.”

The legal market itself is strong, at the moment, Tomicek said, especially with the continued rebound of the real estate and financial services markets. There’s a continued need for international or regional firms in the Czech Republic, he said, but the particular kind of firms needed is changing. The major international players “from the 1990s” are too expensive, he said, pointing out that one or two seem to be closing their doors and withdrawing from the country every year. They’re being replaced, he reported, by smaller regional players, staffed by lawyers who trained at major international firms during the big-payday years, but are now able to offer their services at considerably lower prices. As a result, “small Czech law firms are more and more involved in the market,” which Tomicek called “a good thing for the Czech market — better if Czechs are successful here than just foreign lawyers.”

Finally, Tomicek referred to the comments about the changing demands and expectations of young lawyers that were made in the article about the Hungarian Round Table that appeared in the April 2016 issue of the CEE Legal Matters magazine. He said his colleagues are witnessing an identical phenomenon in the Czech Republic: New lawyers who “come out from law school, know nothing about the practice, but ask when they can go home.” He called it a “sad question,” and explained, “I understand asking about money — but when to go home?” He agreed with the comments by Zoltan Lengyel of Allen & Overy in that April 2016 Round Table that it’s up to the law firms to adapt, and asked, simply, “but how??”

White & Case has confirmed that Partners Michael Smrek and Damian Beaven, along with Local Partner Ales Zidek, are leaving the firm’s Prague office to join R2G, which White & Case describes as “a family office established by Oldrich Slemr, a former shareholder of Ceska Gumarenska group, a major global industrial tire manufacturing business.”

According to Czech Managing Partner David Plch, “all three lawyers have been valued members of the firm and we fully understand their decision to pursue this exciting opportunity. We wish them every success and look forward to continuing to work with them in the future – but as clients rather than colleagues.”

In an official statement released by White & Case, Smrek commented: “White & Case has the unique advantage for CEE players with regional and global ambitions of combining a top tier M&A team in Prague with a strong presence in both London and New York. In my new role I fully expect to instruct my former colleagues at White & Case on a regular basis, because it’s the firm in the Czech and wider CEE market that’s best suited to advising on large, complex, cross-border M&A and other deals and matters.”

Dvorak Hager & Partners has advised GrECo JLT, a leading CEE insurance broker and consultant, on the sale of the Top-Pojisteni.cz insurance comparison portal to Ceskoslovenska Obchodni Banka, a.s. (CSOB). CSOB was advised by Glatzova & Co. on the deal.

The Dvorak Hager & Partners team was led by Prague-based Partner Stanislav Servus, supported by Managing Attorney Marek Bomba and Junior Associate Lucie Kubinyiova.

The Glatzova & Co. team was led by Partner Jiri Sixta, assisted by Associate Jan Vesely.

The Clifford Chance Prague Corporate team has advised ASSA ABLOY, which it describes as “the international market leader in door opening solutions operating in more than 70 countries,” on the successful conclusion of an agreement for the sale of its global car lock business to Alpha Corporation, a Japanese manufacturer of lock and key products for the automobile, housing, and industrial sectors. Allen & Overy represented Alpha on the deal. The sale remains subject to regulatory approval and is expected to close in the second quarter of 2016.

The ASSA ABLOY car lock business, headquartered in the Czech Republic, employs over 450 people and in 2015 had an annual turnover in excess of EUR 60 million. In addition to its presence in the Czech Republic, the operations of the car lock business extend to territories that include China, Mexico, Germany, and Switzerland.

The Clifford Chance team that advised on the divestment was led by Senior Associate Michal Jasek supported by the Prague office’s Managing Partner Alex Cook and assisted by Associates Aneta Sosnovcova, Stanislav Holec, and Jakub Vesely. On the signing of the transaction Jasek commented: ”It was an exciting opportunity for our team to be involved in such a wide-ranging and extensive transaction. The benefits to both businesses are manifest and we look forward to the closing later in the year.” The Prague based-team coordinated the assistance of Clifford Chance offices in Frankfurt, Shanghai, and Tokyo and external legal advisors in the remaining jurisdictions.   

The A&O team was led by Tokyo Partner Nick Wall. Prague Corporate Counsel Prokop Verner provided Czech law advice and was in charge of the Czech part of due diligence, with support from Associate Ondrej Kramolis.

The Czech Republic’s Hruby & Buchvaldek law firm has been engaged by Sebre — a Czech real estate development company — to advise it during the preparation of its new Medport project in Holesovice, a developing area of Prague. According to Hruby & Buchvaldek, Medport will be a multi-purpose building “featuring the innovative and modern architectural design of the renowned studio led by Stanislav Fiala.”

According to a statement issued by Hruby & Buchvaldek, “Sebre is a young development company led by Petr Nemec and Jan Fidler, both experienced and determined entrepreneurs and investors with courage to innovate in architecture while respecting the context of Prague’s spirit.”

At this phase, the Hruby & Buchvaldek team — consisting primarily of Partners Jiri Buchvaldek and Lenka Patermanova — is providing general advisory services and assistance in negotiations. 

Medport marks the third project Hruby & Buchvaldek has advised Sebre on since 2013, following the company’s work on the Sporkovsky Palac and Palac Narodni, both featuring retail and office spaces in the Prague city center.

Image Source: sebre.cz

White & Case has advised Mid Europa Partners (MEP) and Squire Patton Boggs has advised CEE Equity Partners — the investment advisor to the China CEE Investment Co-operation Fund — on the latter’s investment into the Energy 21 operator of photovoltaic power plants. The terms of the agreement were not disclosed.

MEP — a leading private equity firm in Central and Eastern Europe, with approximately EUR 43 billion of funds raised and managed since its inception — invested in Czech-based Energy 21 in 2010. It has an installed generation capacity of 61 megawatts peak. 

The China-CEE Fund was established by China Exim Bank in partnership with other institutional investors from the CEE region to capitalize on investment opportunities in CEE countries. This marks the fund’s 9th investment overall since its launch in 2014, and its first in the Czech Republic. The Fund also has investments in Poland (including in Polenergia and Polish Energy Partners), Hungary (in the BKF University of Applied Sciences), and Bulgaria (in Walltopia).

Pavel Malecek, the CEO of Energy 21, commented: “We are looking forward to cooperating with CEE Equity Partners and the China-CEE Fund, adding to our great partnership with Mid Europa.”

The White & Case team was led by London-based Partner Ross Allardice and Prague-based Partner Michal Smrek, supported by London-based Associates Tony Brown, Philip Vavalidis, Ivo Cavrak, Alexis Fong, and Daniel Hoborough, and Prague-based Associates Jakub Mencl, Petra Zunova and Ida Kucerova. White & Case advised Mid Europa on a number of deals recently, including its 2015 acquisitions of a 100% shareholding in Customer Management Center in Turkey, the 50% stake it didn’t already own in Walmark, and a controlling stake in the Danube Foods Group B.V. and Clates Holding B.V..

The Squire Patton Boggs team advising the China-CEE Fund consisted of Warsaw-based Counsel Pawel Magierowski and Prague-based Partners Jeff McGehee and Radek Janecek.

Editor’s Note: After this article was published CMS informed CEE Legal Matters that it had advised Energy 21 in relation to the investment by CEE Equity Partners.

CMS has advised the investors to Energy 21 since 2009, and reports assisting it in “developing into the largest independent operator of photovoltaic power plants in Central and Eastern Europe through the development and acquisition of numerous solar power plants across the Czech Republic.”

The CMS team advising Energy 21 was led by Partner Lukas Janicek and included Senior Associate Radim Kotlaba and Associates Tereza Maternova and Lukas Vymola.

CEE Attorneys Tomicek Legal has represented Think Food Holding s.r.o. — a special purpose vehicle — in its acquisition of RACIO, a Czech cereal and rice cake producer, from the two private individuals who owned it. The sale price was not disclosed.

Think Food Holding’s shareholders are: (i) Pavel Kratochvila (operating indirectly, through another SPV), with 70% ownership; and (ii) Tomas Nepras (who also happens to be one of the two sellers of RACIO), with 30%. Nepras is selling his 50% share in RACIO to the SPV, as is his former partner, Oldrich Darmovz

Glatzova & Co. has announced that, on January 1, 2016, Czech Banking & Finance lawyer Libor Nemec was promoted from Senior Associate to Partner.

“I am glad that not long after the last appointment of a new partner, another member of our team came to this stage,” said Vladimira Glatzova, Founding Partner of her eponymous firm. “Libor after a five-year collaboration earned our full confidence. His promotion to partner will support further growth, which we await next year.”

Nemec joined Glatzova & Co. in 2010 and was promoted to Senior Associate in 2012. Previously positions include an Associate with Clifford Chance, chief lawyer of the legislative and legal department of the Czech National Bank, and a lawyer of the legislative and legal department of the Czech Securities and Exchange Commission. Nemec also held the positions of Secretary of the Presidium of the Securities Commission and Vice Chairman of the Management Board of the Guarantee Fund of Securities Dealers. He graduated (summa cum laude) with a master’s degree in law from the Law Faculty of Charles University in Prague (2003).

The law office of Hruby & Buchvaldek has announced that Lenka Patermanova has been promoted to Partner at the firm as of July 1, 2015.

Patermanova has worked with the firm for eight years, first as a Junior Associate and subsequently as a Senior Associate. Her expertise lies in transactional commercial, corporate, and real estate matters. In addition to her native Czech, Patermanova speaks Italian and English.

Patermanova received her Master’s Degree from the Faculty of Law of Charles University in Prague in 2007.