Sorainen Represents Latvia in Bailout of Parex Banka
OREANDA-NEWS. February 09, 2009. 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 84,83% stake of Parex banka shares by Mortgage and Land Bank for a symbolic price of two Latvian lats (approximately EUR 2.84). The subsequent government's investments ino the bank (loans, deposits) amount to approximately EUR 1 billion; in addition the state has guaranteed the repayment of syndicated debt of AS Parex banka in amount of EUR 775 million.
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 and the closing of the transaction.
We are continuing to advise the client on various legal issues related to the shareholding in AS Parex banka. In this assignment Riga Office team is led by partners Agris Repss, Girts Ruda and Eva Berlaus-Gulbe.
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