Legal support for the process of sale of real property in connection with the payment of obligations under credit facilities and bonds, backed (among other things) with mortgages. Our lawyers provided advice to a transport company on the sale of real property with the total land area of approx. 35,000 m², including an office building. The transaction was combined with the repayment of obligations under credit facilities taken out by the Group companies and issued bonds. It was proceeded by due diligence of credit facility agreements and real estate (with other creditors also secured on them). The analysis resulted in a complex concept for transaction implementation, including, for example, the transfer of credit claims and claims arising from bonds to a closed-end investment fund, release of the remaining (not subject to transaction) real estate from mortgages backing the repaid credit facilities, consolidation (assumption) of debt in one of the group companies, early redemption of bonds and sale of the real estate, along with their proper classification for VAT purposes. Our service included the drafting of transaction documents, negotiations of terms of sale of the real estate and repayment of obligations, as well as the provision of support in talks with other business partners/creditors concerning the offering of alternative securities of their receivables.

The sale of the real property was implemented under the so-called datio in solutum transaction (performance in lieu of the original obligation), as part of repayment of obligations arising from bank credit facilities and issued bonds, while using the closed-end investment fund. The final element of the transaction included negotiations of the lease agreement under which the fund made the real estate available back to our Client for a definite period of time for the purpose of the Client's business activities.