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Valiunas Ellex and Klavins Ellex have reported that Danske Bank’s sale of its retail banking business to Swedbank in Lithuania and Latvia (as initially reported by CEE Legal Matters on September 28, 2015) has closed. Tark Grunte Sutkiene advised Swedbank on the deal.  

The Klavins Ellex team in Latvia consisted of Partner Egons Pikelis and Senior Attorney Valters Diurej. The Valiunas Ellex team in Lithuania consisted of Lina Radaviciene, Gediminas Reciunas, Vytautas Zelvys, Tadas Proscevicius, and Joana Baublyte, as well as other members of the firm’s Banking/Finance, Competition, Privacy, and Employment teams.

The Tark Grunte Sutkiene team in Lithuania was led by Partners Marius Matonis and Vilius Bernatonis, and included Associate Partner Dalia Tamasauskaite-Ziliene and Associate Giedrius Svidras. Partner Lina Daruliene, the Head of the firm’s Competition practice group, advised on Competition matters, supported by Senior Associate Rasa Zasciurinskaite. The Tark Grunte Sutkiene team in Latvia was led by Partner and Head of the Banking & Finance practice group Inese Hazenfusa, supported by Associates Liene Skinke, Liene Iesmina, and Mara Stabulniece. 

Turcan Cazac has assisted the EBRD in the restructuring and increase of its stake in Victoriabank, Moldova’s third-largest lender, from 15% to 27.56%, in a move the firm described as designed “to restore effective corporate governance and to ensure Victoriabank’s continued sound financial performance.”

According to Turcan Cazac, “the transactions involved: (i) a concurrent transfer by the EBRD and Alpha Bank Romania (ABR), a subsidiary of the Greek Alpha Bank, of their respective shares in Victoriabank to the Dutch company VB Investment Holding BV as in kind-contribution to the capital; and (ii) a subsequent purchase by the EBRD of ABR’s shares in the capital of VB Investment Holding BV.” Kinstellar advised Alpha Bank on the deal. 

Turcan Cazac has assisted the EBRD and VB Investment Holding BV to obtain permissions from the National Bank of Moldova and the National Financial Market Commission to carry out the deal as well as with the transfers of the shares in Victoriabank outside of the regulated capital market of Moldova. Turcan Cazac has assisted the EBRD in relation to the debt financing of Victoriabank — which the EBRD has been an investor in since 1995 — since 1999.

The EBRD/VB equity transaction was led by Turcan Cazac Partner Octavian Cazac, with assistance from Associates Ana Galus, Vadim Taigorba, and Diana Ichim.

Kinstellar’s team was coordinated and led by Managing Associate Zsuzsa Csiki, working under the supervision of Partner Razvan Popa. Associate Mihai Coada, also provided support.

CMS reportedly also advised the EBRD on the deal, but declined to confirm its involvement or comment in any way.

Drzewiecki Tomaszek has reported that, on May 6, 2016 the Regional Court in Warsaw, as the court of second instance, ruled that a contractual provision applied by Bank Millennium S.A. passing the cost of a loan insurance policy on to the borrower was unfair and not binding upon the borrower.

According to Drzewiecki Tomaszek, “the court stated that the loan agreement continued to be binding, however the bank was obliged to return any and all payments collected from the borrower based on the unfair contractual provision to the claimants (Monika and Sebastian Stasiak) represented by Drzewiecki Tomaszek. This means that also in the future the bank shall not be entitled to collect any fees from the lender on the basis of the contractual provision which has been found unfair. The judgment is final. 

Drzewiecki Tomaszek has won several similar cases recently involving banks attempting to pass on the cost of the so-called High LTV insurance to borrowers. The firm reports obtaining similar judgments for clients in several similar cases, including one on January 28, 2016 (Sandrine Jacques vs. Bank Millennium S.A)  and February 23, 2016 (Lukasz Huptys vs. Bank Millennium S.A.). According to Drzewiecki Tomaszek, “these judgments may be expected to constitute settled case-law in respect of the provisions of loan agreements regarding High LTV.”

According to Drzewiecki Tomaszek, the defendant bank was represented by Merski Radcy Prawni i Adwokaci Sp.k.

Czech lawyer Karel Budka has become the new General Counsel at Invia, the largest Internet travel agency in the Czech Republic.

Invia provides vacation packages from over 200 tour operators on the Czech and Slovak market. The company also offers flight tickets, accomodation in the Czech Republic & worldwide, and other services and useful information related to traveling. Since 2006, the company has also operated on the Polish and Hungarian markets, and it is expanding to Russian and Romania as well.

Budka moves to Invia from the Photon Energy Group, where he worked from October 2013 to May of this year, and he spent a year in private practice with the Belina & Partners law firm from 2012-2013. He received his la degree from the Charles University in Prague, and a subsequent J.D. from the Nova Southeastern University Shepard Broad College of Law in Florida.

When contacted by CEE Legal Matters, Budka explained his move: “I was particularly impressed by the opportunity to join a large and quickly-growing company with a turnover over CZK 5 billion, which acts as a leader in its field in the Czech, Slovak, Polish and Hungarian markets. My position was set up in connection with a take-over by the financial group Rockaway Capital (and CEFC group), which opens new possibilities for worldwide activities and cooperation.”

Chajec, Don-Siemion & Zyto (“CDZ”) has won a tender to provide legal services to PGE Energia Odnawialna S.A. (“PGE EO”) in its head office and branches.

PGE EO is a subsidiary of PGE Polska Grupa Energetyczna S.A., the largest energy holding operating on the Polish market and one of the largest energy companies in Central and Eastern Europe.

As part of its services, CDZ will advise on contract drafting, and provide opinions on contracts and statements with legal effects, draft legal opinions and review legal documents, participate in negotiations with PGE EO’s partners, provide opinions on internal regulations, make submissions and participate in proceedings before public administrative bodies, and represent the company in courts and public administrative bodies.

CDZ has provided legal services for PGE EO since April 2015. Over the last year, the firm has advised PGE EO on the restructuring of its subsidiaries through M&A transactions, among other matters, and has represented it in many court proceedings, as well as carrying out a legal due diligence analysis of Eolica Wojciechowo sp. z o.o., a wind farm owner.

“We are pleased to continue to cooperate with PGE EO and to support its investment strategy for renewable energy generation,” said Andrzej Chajec, Managing Partner at CDZ.

The Esin Attorney Partnership, a member firm of Baker & McKenzie International, represented The Abraaj Group (“Abraaj”) in connection with its acquisition of a minority stake in Fibabanka A.S. (“Fibabanka”) via a privately negotiated share subscription agreement executed with Fiba Group on June 3, 2016. The stake will be acquired through share subscription after completion of regulatory approvals.

The IFC and EBRD are currently shareholders of Fibabanka.

Abraaj is a leading private equity investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey. Employing over 300 people, Abraaj has over 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi, and Singapore. Abraaj currently manages approximately USD 9.5 billion across regional, sector and country-specific funds. Abraaj claims to have realized USD 6.3 billion from over 80 full exits, and funds managed by Abraaj have made approximately 170 investments across 10 sectors including consumer, energy, financials, healthcare, and utilities.

Fibabanka is a private bank in Turkey established through the acquisition of the Turkish arm of Millennium Banco Comercial Portugues. Fibabanka joined the Fiba Group in 2010, and — according to the Esin Attorney Partnership — it has “demonstrated an impressive track record, nearly quadrupling its branch network and growing its assets and loans by more than twelve times since then.” Fibabanka currently has 70 branches across 18 cities in Turkey, total assets of USD 4.3 billion, and a loan book of USD 3.2 billion at the end of Q1 2016.

Remarking on the matter, Esin Attorney Partnership Partner Eren Kursun commented that: “When you take Abraaj’s successful track record of banking transactions around the world and combine it with Fiba Group’s expertise in the Turkish banking sector and Fibabanka’s growth performance so far, it is difficult not to feel excited about this partnership.”

In addition to Kursun, the Esin Attorney Partnership team consisted Caner Elmas, Berk Cin, Sitki Can Tulay, Mine Guner, Cansu Gunel, Serenay Cinki, Binnaz Topaloglu, and Berkay Ozludil.

Laszczuk & Partners reports that Poland’s Supreme Administrative Court has agreed with its argument, made on behalf of firm client the Holy Trinity Parish, that a hotel with a restaurant cannot be built within a 50-meter buffer zone around active cemeteries.

According to Laszczuk & Partners, in its judgment of May 31, 2016, the court “confirmed its earlier position … that the rules on the buffer zone in the regulation of the Minister of Communal Economy of 25 August 1959 apply not only to establishment of new cemeteries, but also to the siting of new construction adjacent to existing cemeteries. According to the regulation, the distance between a cemetery and residential construction, as well as buildings where food is stored or gastronomic services are provided, cannot be less than 50 meters. This means that it is impermissible to carry out residential construction, or construction of buildings where food service will be offered, in the buffer zone around an active cemetery.”

In the case ending with this recent judgment, the construction authority had issued a decision on construction conditions in 2010 permitting the construction of a hotel building with a restaurant within 50 meters of two active cemeteries in Warsaw: the Lutheran Cemetery and the Reformed Cemetery. In the zoning plan for the area adopted a year later, the planning authority introduced restrictions on construction in the buffer zone around the active cemeteries. 

According to Laszczuk & Partners, “because the decision on construction conditions permitted a project to be carried out which was not permitted by the zoning plan in force for the site, it was necessary to seek a declaration that the decision had lapsed, which was issued by the administrative board of the Wola district of Warsaw. Following an appeal by the investor, the decision on lapse of the decision was set aside by the Warsaw local appeal board and the matter was discontinued. The parish then filed a petition against the decision of the local appeal board with the Province Administrative Court in Warsaw. The court upheld the arguments presented by the parish and overturned the decision of the local appeal board. The investor disagreed with the judgment and filed a cassation appeal with the Supreme Administrative Court. The Supreme Administrative Court fully agreed with the position of the parish and the lower court, and issued a judgment on 31 May 2016 denying the investor’s cassation appeal.”

The Laszczuk & Partners team advising Warsaw’s Holy Trinity Lutheran Parish before the administrative authorities and in court consisted of Managing Partner Justyna Szpara and Senior Associate Agnieszka Kocon.

Sorainen has advised the BITE group, a major mobile operator in Lithuania and Latvia, on its acquisition of a controlling shareholding in Spainetos Prekybos Sistema and its Latvian subsidiary, Spaineta Latvia. Valiunas Ellex advised Spaineta on the deal.

Spaineta operates a retail network distributing BITE services, smartphones, and accessories, with over 300 staff in Lithuania and Latvia.

The BITE Group controls a leading mobile operator in the Baltic States (the second largest in Lithuania and number three in Latvia) focused on meeting growing demand in the region for a high quality network experience and providing excellent customer service. The BITE Group offers a range of mobile services, internet access and data services for business and residential customers through its nationwide coverage.

Sorainan’s project team was led by Partner Laimonas Skibarka and Senior Associate Jonas Kiauleikis.

On June 3, 2016, the Vegas Lex Board of Partners elected Head of Technology and Investment group Alexandra Vasyukhnova and Head of Southern directorate Maxim Grigoryev to the firm’s partnership.

Alexandra Vasyukhnova is a graduate of the Volgograd State University and joined Vegas Lex in 2002, where she specializes in investment projects, M&A deals, commercial contracts, antitrust litigation, and IT projects. According to Vegas Lex, “she provides legal support to start-up projects, advises them on intellectual property issues, and represents their interests in litigation relating to intellectual property.” In a statement released by the firm, Vasyukhnova commented: “I am accepting my role as a partner with joy and a deep sense of responsibility, and will actively participate in the company’s future development. Our team, our clients and ambitious plans inspire me daily for the realization of the most complex legal projects.”

Maxim Grigoryev is the head of the firm’s “Southern Directorate” in Krasnodar. He is a graduate of the Kuban State University in Krasnodar, and Vegas Lex describes him as “an expert in the structuring of contractual relationships between companies and authorities. He advises projects that involve government support and stimulation of business development; accompanies investment transactions and joint ventures; advises and represents companies in commercial disputes, including disputes of international nature that involve recovery of damages for technological violations and environmental abuses, in corporate disputes and other types of litigation.” In that same statement released by the firm, Grigoriev said: “I am grateful to the Board of Partners for their trust and recognition of my efforts, aspirations, and achievements in business development. I am very happy to have joined this super-professional team back in 2008, which is not only an inexhaustible source of new knowledge and skills, but also a team of like-minded persons, worthy companions and trusted friends.”

“Alexandra Vasyukhnova and I have been developing the intellectual property practice for more than ten years. We supported IP and TMT projects quite successfully,” Managing Partner Alexander Sitnikov commented on the new appointments. “Respected Russian publishing houses and telecommunications companies, major Russian banks and investment funds, as well as fast-growing startups recognize the outstanding level of Alexandra and her team’s competence in project implementation. Maxim Grigoryev has been with us for eight years, and never ceased to amaze Vegas Lex management and clients with his enormous capacity for work. He has the gift of infecting everyone around him with his positive life energy. Maxim confirms his high level of professionalism daily, performing tasks of varying complexity. Foreign investors and leading Russian companies trust him with their key projects. I congratulate my colleagues with the promotion to a new career level. We are confident that their leadership potential will help them to contribute to the company’s further growth and strengthen its positions on the market.”

Tark Grunte Sutkiene has advised the European Investment Bank (EIB) on two new agreements entered into with Siauliu Bankas to support the refurbishment and modernization of multi-apartment buildings in Lithuania with an additional EUR 110 million under the Jessica II fund — EUR 70 million of which was contributed by Siauliu Bankas.

The Jessica II fund, managed by the EIB, supports energy efficiency modernisation of residential buildings under the Lithuanian government’s “Multi-apartment Buildings Modernization (Renovation) Program”. This is the second agreement with Siauliu Bankas as the selected financial intermediary under the 2014-2020 EU regulations for Decentralized Financial Instruments. Under this agreement Siauliu bankas will disburse EUR 80 million in preferential loans to home owners. Half of that amount will be made available from Siauliu Bankas’ own funds. 

Housing renovation is one of the declared priorities of the Ministry of Environment of the Republic of Lithuania. According to the Housing Energy Efficiency Agency, 784 renovation projects are currently ongoing, at a combined cost of approximately EUR 245 million. The Lithuanian regions of Ignalina, Druskininkai, Moletai, Anyksciai, Jonava, and Kelme are seeing the most activity in the renovation process.  

Tark Grunte Sutkiene has been advising the EIB on the “Jessica” program implementation in Lithuania since 2009 and represented the EIB in negotiations with Siauliu Bankas. The firm’s team consisted of Partner Vilius Bernatonis and Associate Partner Neringa Grazinyte.