With a team led by Frankfurt-based partner Dr. Günther M. Bredow, Heuking Kühn Lüer Wojtek advised a leading Landesbank on the sale of a secured portfolio of non-performing loans to almost exclusively insolvent companies with a volume of EUR 233 million.
The portfolio sold consists of more than 120 secured, already canceled or matured commercial loans to mainly insolvent companies from various industries (including renewable energies, automotive, mechanical engineering, and construction). The creditors primarily come from Germany, with some from Austria and Luxemburg. The regional focus lies mainly on Baden-Württemberg and North Rhine-Westphalia, but also on Hesse and Bavaria.
Heuking Kühn Lüer Wojtek advised the Landesbank in drafting and carrying out the bidding procedure, as well as in the subsequent contractual negotiations in matters pertaining to contracts, financing, banking supervision, and taxes. Since almost exclusively insolvent creditors are concerned, special requirements to contract drafting under insolvency law had to be met.
The team led by Dr. Bredow regularly advises large-volume portfolio transactions, both PL (performing loans) and NPL (non-performing loans). In the past, the team had advised ING DiBa AG on the acquisition of the "Elephant" PL portfolio (EUR 4.3 billion), FMP Forderungsmanagement Potsdam GmbH on the acquisition of the "Nebraska" NPL portfolio and a leading Landesbank on the sale of a major PL portfolio (EUR 8 billion). Only recently, a U.S. hedge fund was represented in two bidding procedures for the "Racing" and "Wagner" PL/NPL portfolios.
Counsel to the Landesbank:
Heuking Kühn Lüer Wojtek
Dr. Günther M. Bredow, LL.M. (Lead)
Alexander J. Thum (all Contract Law/ M&A)
Michael Neises (Finance and Loan Law)
Dr. Christoph Gringel,
Johanna Stremnitzer, LL.M. (both Banking Supervision Law)
Christian Staps (Insolvency Law),
Dr. Claudia Rüggeberg (both Tax Law)
Ernst & Young