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CMS Advises Banks on Kernel Loan Postponement

CMS Advises Banks on Kernel Loan Postponement

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CMS has advised a syndicate of banks led by ING Bank on the postponement of loan payments under the USD 450 million pre-export facility for Ukraine’s Kernel Group. Linklaters reportedly advised the Kernel Group. Allen & Overy reportedly advised Natixis, another lender.

According to CMS, "the terms of repayments postponement have been developed and agreed upon in parallel for several bank creditors of Kernel, including Natixis, the EBRD, and the EIB, following a fair treatment principal approach. According to the agreed terms, Kernel will continue to pay interest accrued on loans in accordance with the terms of loan agreements, whereas the principal repayment is postponed until June 30, 2023."

"The payment terms adjustment was required due to the severe disruptions to the business processes and logistics for the supply of grain and sunflower oil, caused by the Russian invasion of Ukraine, in particular the blockade of Black Sea ports," CMS added. "The agreement in relation to the bank debt repayment reached with the creditors of the Kernel Group would provide the necessary financial stability for the Kernel Group to work in the current unprecedented circumstances of the Russian aggression against Ukraine."

Kernel is a Ukrainian bottled sunflower oil producer and seller. According to CMS, before the war, Kernel was ranked first in the world in sunflower oil production and export.

CMS previously advised a syndicate of banks led by ING Bank on the extension of a pre-export facility for Ukraine’s Kernel Group as well as an increase in the credit facility to USD 420 million (as reported by CEE Legal Matters on November 9, 2021).

The CMS international team was led by Kyiv-based Counsel Kateryna Chechulina and included Partner Ihor Olekhov, Senior Associate Mykola Heletiy, Associates Khrystyna Korpan, Ivan Pshyk, Iryna Barlit, and Roman Hryshyn-Hryshchuk, and Trainee Ruslan Dotsenko, as well as Sofia-based Partner Elitsa Ivanova and teams from the firm’s Switzerland and Luxembourg offices.

CMS at a Glance

CMS Sofia is a full-service law firm, the largest international law firm in Bulgaria and one of the largest providers of legal services in the local market as a whole. The breadth and depth of our practice means that our lawyers are specialised, with a level of specialisation that few of our competitors can match.

CMS Sofia is the Bulgarian branch of CMS, a top ten global legal and tax services provider with over 5000 lawyers in 43 countries and 78 offices across the world.

CMS entered the Bulgarian market as one of the first internationally active law firms in 2005 and is now among the most respected legal advisors in the country. We have 7 partners, 4 counsel and over 30 lawyers in our office in Sofia.

Our legal experts, who are rooted in Bulgaria’s local culture, can also draw on years of experience in foreign countries and are at home in several legal systems at once. We know the particularities of the local market just as well as the needs of our clients and combine both to achieve optimum solutions. Our lawyers are Bulgarian qualified and we also have English qualified experts – all of them regularly working on cross-border mandates.

In our work, we focus on M&A, Energy, Projects and Construction, Banking and Finance, Real Estate, Media, IP and IT law, Tax, Employment law, Competition, Procurement and any kind of Dispute resolution, including arbitration and mediation. What’s more, we also take care of the entire legal management of our clients’ projects.

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