Harneys advised on Cayman and BVI law aspects in connection with the restructuring, financing, and subsequent US$130 million sale of Cayman Islands companies affiliated with a Bulgarian telecoms and cable television company. The Reorganisation comprised the use of two new Cayman Islands holding companies under which the Bulgarian group was reconstituted to act of the target companies for the future sale. Aspects of the transaction included the creation and issue of loan notes under Cayman law, the assumption of share warrants by the Cayman companies and the transfer and discharge of certain of the loan notes to satisfy intra group indebtedness. The transaction involved the consideration of solvency issues, dividends, enforceability, capacity, directors' duties and related matters under Cayman and BVI law.

 

The Harneys team was led by Cayman partner Tim Clipstone.

 

Other parties involved included CMS Cameron McKenna in London and Bulgaria for the Sellers; and Clifford Chance in London, Amsterdam and Bulgaria; Maples and Ogier for the Purchasers.