Advising on a complex collateral and indemnity case – Our client regained full control of his assets

A leading beverage producer in Central and Eastern Europe asked our law firm to assist in a complex compensation case.

The problem faced by the Client was the security granted by the Court on the assets of the Company and entities controlling it for the amount of nearly PLN 200 million in order to secure the compensation claim of the Investment Fund worth nearly PLN 60 million. The amount of the claim was 3.3 times lower than the value of the secured assets. The basis of the claim was, in the Fund’s view, a breach of our Client’s disclosure obligations under the MAR Regulation, as a result of which, according to the Claimant, the Client suffered damage. The Client was in deep crisis as all of the Company’s bank accounts and liquid assets were blocked.

Our team of experienced lawyers took a multi-pronged approach to resolving the issue. First, it prepared a complaint against the Court’s order and, in the meantime, initiated settlement talks to resolve the dispute. At the same time, he held discussions with the Company’s financing institutions. As a result of the negotiations, an agreement was reached as a result of which the Fund renounced its claims, withdrew the statement of claim and the application for security, thus the Court had no choice but to issue an order discontinuing the court and security proceedings. Thanks to our legal support, the client regained full control over its assets.