Company acquisition and reduction of its debt

Provision of advice on multi-party transaction of acquisition of a production plant combined with the reduction of company debt and release of encumbrances established on its assets. The partners of our Law Firm provided advice to the buyer (industry investor) in the acquisition of big a production plant and specialist warehouses, located on several properties owned by the indebted company. The Client's business objective was attained after legal due diligence of the acquired assets and the company, supported by our team, and following the negotiation and completion of a number of closely interrelated constituent transactions. The transactions involved a number of parties and supporting entities (including legal and tax advisors, economic advisor, property appraisers, notary public). After the transaction had been agreed by the parties as a whole and the documents securing the legal interests of the parties had been signed, the transaction was carried out within two weeks. In the first stage, with the requirements of the depositary bank acting on behalf of our Client taken into account, the investment fund company representing a securitisation fund conditionally acquired from the consortium of banks a credit claim owed to the owner of the aforementioned assets, which also involved the need for partial transfer and partial release of the securities, including mortgages established by both the debtor and third parties. In order to meet the expectations of the banks regarding the ensuring of timely payments, the money was put by the Client in notary's escrow accounts and transfers were made. After the claim had been acquired, the securitisation fund issued bonds which were acquired by the Client. At the next stage, the company's assets were acquired from the company by the Client and by third parties. At the final stage, the Client became a holder of 100% of the shares in the company. The obligations to make payment were met by way of the aforementioned bonds, cash deposited into the notary's escrow accounts, as well as datio in solutum and contractual set-off. As a result, the claims of the banks and the securitisation fund were satisfied, the acquired assets were released from encumbrances and the acquired company was freed of debt on favourable terms.