Reff&Associates: new financings, loan restructurings, more real estate takeovers expected for 2011

Reff & Associates, the correspondent law firm of Deloitte Romania, assisted client transactions with an aggregate value of over EUR 1 billion last year, the firm has announced. “In a shrinking market we managed to keep a stable business, we continued to consolidate our team, and revenues were maintained at the same level as in previous years. We were again involved in some of the most important transactions in the areas of M&A, Real Estate and Banking & Capital Markets,[...]” according to Alexandru Reff, Partner Reff & Associates. The company expects the banking & capital markets to see a continuation of banking transactions, including new financings, as well as loan restructuring. “In 2011 this sector will witness the finalization of certain lengthy restructuring processes, as well as new loan restructuring operations. At the same time we believe that this year may bring a more decisive approach from banks related to the takeover of certain financed projects, especially in the Real Estate sector (only in those cases were no other solutions can be found). This trend is highlighted also by the National Bank of Romania who added on this year’s agenda the discussion of new regulation (presented as draft project last year) regarding the detailed conditions under which banks are allowed to temporarily take over shares from companies as part of the loan restructuring process,” said Andrei Burz-Pînzaru, partner Reff & Associates and coordinator of the banking & capital markets practice. In 2010, Reff & Associates assisted New Europe Property Investments (NEPI) investment fund alongside the acquisition of Iris Shopping Center in Pitesti and the office complex Floreasca Business Park. In the area of M&A, the lawyers from Reff & Associates acted as legal counsel to a group of five banks (BCR SA, BRD SA, UniCredit Țiriac Bank SA, Raiffeisen Bank SA and Financiara SA) as shareholders of Romcard SA, in the 100 percent sale of their stake to Provus Service Provider. In the Banking & Capital Markets sector, Reff & Associates is currently involved in a series of loan restructuring mandates, with values ranging between EUR 45 million and approximately EUR 200 million. “We still face the risk that the dynamics of the first months will slow down during the year, considering also the uncertainties which are still present at global level. The local trends could decisively improve compared to last year, as a significant economic increase is foreseen for 2012. This means, among others, an activation of the M&A processes, eventually stirred also by banks and by the consolidation needs in certain markets,” Alexandru Reff also added. editor@romania-insider.com