OREANDA-NEWS. November 28, 2008. Sorainen Riga Office team is representing the State Joint Stock Company “Latvijas Hipoteku un zemes banka” (Mortgage and Land Bank) and its shareholder, Latvian state, in the bailout of AS Parex banka, which is the first government bailout case in Latvia resulting from the current global financial crisis, reported the press-centre of Sorainen.

The Investment Agreement signed with the majority shareholders of Parex banka, Mr. Kargins and Mr. Krasovickis, provides for purchase of 51% stake of Parex banka shares by Mortgage and Land Bank for a symbolic price of two Latvian lats (approximately EUR 2.84) and the government's undertaking to issue state guarantees for refinancing of the bank's syndicated loans in amount of EUR 775 million, as well as to invest up to 200 million lats (ca EUR 284 million) in the subordinated capital of the bank.

We were advising the client on the structure of the transaction, including advice on state aid and regulatory matters, drafted the Investment Agreement and all other transaction related documents, as well as provided assistance to the client in the negotiations of the Investment Agreement.

Currently we are working on preparation of the closing of the transaction. In this assignment Riga office team is led by partners Agris Repss, Girts Ruda and Eva Berlaus-Gulbe.