News (#4 April 2018)


AVELLUM advised Ministry of Finance of Ukraine

AVELLUM acted as the Ukrainian legal counsel to the Ministry of Finance of Ukraine on a state-guaranteed USD 250 million loan extended to the State Enterprise National Nuclear Energy Generating Company Energoatom. The loan is funded through the issue of loan participation notes on United States capital markets, arranged by Merrill Lynch, Pierce, Fenner & Smith. Overseas Private Investment Corporation, a United States Government agency, has issued an insurance policy on the loan.

The loan proceeds will be used to finance the construction of a central storage facility for the spent nuclear fuel produced by three nuclear power plants in Ukraine. The facility will be located in the Chornobyl exclusion zone. Once fully operational, the central storage facility will create a safe environment for processing, storing, and safeguarding significant quantities of spent nuclear fuel.

The AVELLUM team was led by senior partner Glib Bondar, with support from counsels Taras Dmukhovskyy and Vadim Medvedev, senior associate Anna Melnychuk, and associates Orest Franchuk, Oleg Krainskyi, Oleksii Maslov, and Vladyslav Aleksandrov.

Asters advised General Electric

Asters acted as a legal counsel to GE Transportation, a division of the General Electric Company, in connection with a USD 1 billion framework agreement with Ukrzaliznytsya, the countrys state-owned rail transport company. The agreement includes the supply of 30 GE Evolution Series freight locomotives to Ukrzaliznytsya and envisions further delivery of additional locomotive sets over the next decade, as well as the rehabilitation of locomotives in the railways legacy fleet and long-term maintenance services.

Asters advised GE Transportation on its execution together with the State Export-Import Bank of Ukraine for the purchase and sale agreement of the first 30 locomotives and their subsequent transfer to Ukrzaliznytsya under a financial leasing agreement.

Asters project team included counsel Olena Radko and associate Maksym Tereshchuk led by senior partner Armen Khachaturyan.

JSC Lekhim buys out shares of minority shareholders in PJSC Technolog

On 23 February 2018 2,627,250 shares in PJSC Technolog were credited to the account of the controlling shareholder JSC Lekhim as a result of a squeeze-out. Since June 2017 this procedure, which is common in the EU and the world, became available for dominant shareholders in Ukraine.

Both Lekhim and Technolog belong to the Lekhim group of pharmaceutical companies which is one of the leaders in development, production and distribution of pharmaceuticals. To optimise the shareholding structure and to improve governance in Technolog, a group of shareholders, including Lekhim, used their right for a compulsory buy-out of shares from minority shareholders.

Vasil Kisil & Partners law firm provided full legal support to the squeeze-out procedure. The lawyers of the firm prepared a detailed plan for the squeeze-out, drafted an agreement between the shareholders for a joint buy-out of the shares, assisted with opening an escrow account in a bank, and drafted all documents required by law, including irrevocable public demand on a buy-out of shares. Also, the firms lawyers advised on interaction with an independent appraiser, the National Securities and Stock Market Commission of Ukraine, a bank, and custodians.

The project team included Volodymyr Igonin, partner, Taisiia Asadchykh, associate, Artem Shmatov, junior associate.

AVELLUM acted as the Ukrainian legal counsel to ING Bank

AVELLUMacted as the Ukrainian legal counsel to INGBankN.V. in connection with two secured pre-export revolving loan facilities with a total value of USD 25 million to Agroprosperis Group.

The loan proceeds are intended to be used for the purchase of Ukrainian agricultural commodies (including wheat, corn, sunflower seeds, barley, rapeseed, and soybean) in the Ukrainian market for the purposes of further export. AVELLUM provided legal support to ING with preparation, negotiation, and execution of the transaction documents from the perspective of Ukrainian law, as well as with completion of the transaction.

The AVELLUM team was led by senior partner Glib Bondar, with support from associates, Tetiana Mykhailenko, Orest Franchuk, Oleg Krainskyi, and Anna Mykhalova.

Victoria Gardens shopping mall changes owner

Baker McKenzies Kyiv office advised Phoenix-Capital LLC on the multi-tiered sale transaction of Victoria Gardens shopping centre, the largest shopping mall in Western Ukraine, to Dragon Capital.

Baker McKenzies team was led by managing partner Serhiy Piontkovsky, with key input from senior associate Andrii Grebonkinand associate Elmaz

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