Cuatrecasas, Gonçalves Pereira: legal advisor to the fund for financing payments to suppliers

2012年5月17日

  • The firm’s Finance Practice, led by partners Rafael Mínguez and Fernando Navarro, will coordinate the application of this new mechanism in what will be the largest financing transaction in Spain’s history.
  • It will involve a €35 billion injection into the economy, to clean up the debts of local authorities and autonomous regions.

Cuatrecasas, Gonçalves Pereira will handle the legal aspects of implementing the €35 billion fund for financing payments to suppliers (fondo de financiación de pago a proveedores or the “FFPP”) created by the Spanish government. The firm was chosen in the final stage of a competition held by the banks providing the backbone of the financial aid—Bankia, BBVA, Caixabank and Santander—and the Spanish Institute for Official Credit. Also, another 22 entities will finance the fund.

The mechanism involves one of the largest financing transactions in Spain. Rafael Mínguez, coordinator of Cuatrecasas, Gonçalves Pereira’s Corporate Finance Group. describes it as an “unprecedented” formula “through which the private sector will finance the public sector, enabling it to pay its debts with large, medium and small companies. Thus, a solution is found for a large-scale problem in these times of credit crunch.”

“The €35 billion, to be channeled through a syndicated bank loan arranged by Spain’s main financial entities, will be used to pay suppliers directly or through loans that the FFPP will grant to local authorities and autonomous regions,” says Fernando Navarro, another of the partners responsible for coordinating the transaction.

According to the Spanish government’s estimates, the plan will clearly boost the country’s productive economy. With the introduction of the FFPP, 100,000 jobs are expected to be created as well as the payment of outstanding invoices to over 177,000 suppliers. Rafael Mínguez believes that “being chosen to coordinate this transaction is recognition of the brand of Cuatrecasas, Gonçalves Pereira’s financial practice.”

Cuatrecasas, Gonçalves Pereira’s Corporate Finance Group comprises over 40 lawyers with extensive experience in complex national and international transactions. The lawyers have in-depth knowledge of the sector, the regulatory bodies and the most innovative financial tools adapted to clients.

 

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