Chadbourne & Parke Represents EBRD in Euro 135 Million Loan to Romanian Companies
LONDON — July 6, 2004 — Chadbourne & Parke is representing the European Bank for Reconstruction and Development in a Euro 135 million loan to two Romanian wood-processing companies owned by Italy’s Gruppo Frati as they prepare for their acquisition by Kronospan Holdings Ltd., Europe’s leading producer of wood-based panels.
The financing on the loan was signed June 24th.
Chadbourne attorneys working on the deal were London office partner Nabil Khodadad and associate Rubin Weston. Assisting Chadourne on issues of Romanian law were the Romanian law firm of Musat & Associates.
The EBRD loan will help support the financial restructuring of MDF Sebes, a medium-density fiberboard and resin plant, and Sepal, a particleboard plant. Following the acquisition, it will also assist both companies in removing production bottlenecks and expand their particleboard production capacity.
The EBRD will take Euro 70 million, with 10 year maturity on its own books, with the remainder of Euro 65 million with 7 ½ year maturity syndicated to a consortium of Austrian banks, in what is considered by industry experts as a rare combination of a large syndication for a private deal in Romania and the longest maturity for a private company in the country.
Established in 1897, Kronospan operates in 11 European countries and focuses on three major areas, including wood-based panels, flooring, and chemicals and paper. Kronospan is the global leader in manufacturing medium- and high-density fiberboard.
About Chadbourne & Parke LLP
Chadbourne & Parke LLP, an international law firm headquartered in New York City, provides a full range of legal services, including mergers and acquisitions, securities, project finance, corporate finance, energy, telecommunications, commercial and products liability litigation, securities litigation and regulatory enforcement, white collar defense, intellectual property, antitrust, domestic and international tax, reinsurance and insurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. The Firm has offices in New York, Washington, D.C., Los Angeles, Houston, Moscow, Kyiv, Warsaw (through a Polish partnership), Beijing and a multinational partnership, Chadbourne & Parke, in London. For additional information, visit chadbourne.com.