EXPERTISE

Kinstellar advises on the largest NPL deal in Bulgaria this year

October 2015 – Kinstellar is pleased to announce that its specialised non-performing loan (NPL) team has successfully advised APS Holding, a leading Czech financial group covering Central and South Eastern Europe, on the acquisition of an unsecured consumer-loan portfolio worth more than EUR 50,000,000 from a leading Bulgarian consumer credit institution. The deal is the largest such transaction in Bulgaria to date in 2015.

Kinstellar’s experts brought together local and regional know-how to provide comprehensive support to the client. Our work including deal structuring, advising the client throughout the negotiation and execution of the final sale and assignment agreement, and ensuring the successful closure of the deal. It was a challenging assignment, involving intense negotiations to secure a binding preliminary agreement for the portfolio within a very ambitious deadline.

The finalisation and closing of the transaction had to further address various interesting and challenging issues, such as administration of the portfolio in the interim period between signing and closing, satisfaction of a number of preliminary conditions, issues related to the notification of more than 100,000 debtors, stepping into any initiated enforcement proceedings, liability of the seller in case of defective receivables, etc. From the merger control perspective, the deal also required a sound compliance analysis. We are pleased that our client entrusted both our Prague and Sofia offices and gave us the opportunity to advise on this landmark transaction.

For more information please contact Diana Dimova, Partner, at .