Banking and finance

Overview

The global slowdown of 2007-9 has changed the dynamic of the Bulgarian financial market. Clients' need for confidence in receiving the best possible advice and for confidence that they are mitigating as many risks as possible has, if anything, increased. The conclusion of debt transactions demands a sophisticated and broad mix of financial and legal capabilities now more than ever.

Our approach to transactions is analytical and rigorous. This allows us to assist clients with innovative solutions and we aim to be at the forefront of all types of finance law work, while remaining highly pragmatic.

To date, we have advised on a large number of transactions with both creditor and debtor clients. We understand how products in the capital structure operate. We also appreciate the different approaches and requirements of lenders, borrowers and investors in the currently unbalanced credit market. 

Security

We have assisted our clients in executing secured transactions involving all forms of security, including:

  • bank and performance guarantees;
  • charges and pledges over assets;
  • charges over shares and movables;
  • floating/fixed/going concern charges;
  • mortgages over real estate, etc.

Our lawyers advise banks and other lenders, borrowers, funds and investors in large scale real estate transactions. The team advises our clients on a wide range of property investment and development financings implemented, where relevant, through structured deals of some complexity.

Thus, we have a strong experience and good understanding of all aspects of real estate finance on the Bulgarian market.

Our firm advises stakeholders on the legal aspects of projects and project financings across industries. We provide comprehensive advice on joint ventures and project structures, conduct legal due diligence assignments, assess risk allocation and review the financing arrangements and the relevant security packages.

Through our strong M&A and Insolvency and Reorganization teams, we have good experience in advising corporate debtors in relation to debt restructurings, re-financings and recapitalizations, debt buy-backs, and other forms of restructuring.

Recent work:

Stopping the improper use of insolvency proceedings

A client of our dispute resolution team (led by Kamen Shoylev and Yordan Neshkov) was recently the subject of an indirect claim by a Bulgarian bank with which this client has been engaged in a multi-stage dispute. Unusually, the bank acted through a vehicle registered in an African state, which made an unfounded claim in the tens of millions of euros against our client and sought the commencement of judicial insolvency proceedings against this client. The offshore vehicle was chosen to isolate the bank from liability and create certain evidential difficulties for our client's representation.

NBLO succeeded in terminating the insolvency proceedings, with direct loss fully awarded to our client. A second claim to recover our client's indirect losses is currently under way.

Where targeted in this way through insolvency proceedings, a company may be prevented from trading properly (e.g., by suffering restrictions on its financing or being unable to participate in public procurement).

Through our considerable experience in insolvency litigation, both entirely domestic and where there are European and cross-border elements, we are ideally placed to assist clients in resisting such attacks and recovering the real and considerable losses that may be suffered.

© New Balkans Law Office 2019