Best Acquisition / Leveraged Finance Lawyers in Kyiv

About Acquisition / Leveraged Finance Law in Kyiv, Ukraine

Acquisition and leveraged finance law is a specialized area encompassing the legal structuring, negotiation, and documentation of loans or other financial instruments used to fund the purchase of businesses or assets. In Kyiv, Ukraine, this field has seen rapid development due to a growing number of mergers, acquisitions, and investment opportunities. The use of both domestic and cross-border financing structures is common, and transactions often involve Ukrainian law alongside international protocols and standards.

Why You May Need a Lawyer

Acquisition or leveraged finance transactions are complex and involve significant financial, regulatory, and legal risks. Common situations where a lawyer’s support is essential include:

• Structuring the finance arrangements for acquiring a business or asset in Ukraine
• Negotiating and drafting loan agreements, security documents, and intercreditor arrangements
• Conducting due diligence on the target company or assets
• Ensuring compliance with Ukrainian and international laws
• Advising on regulatory issues, such as required permits or notification to authorities
• Guiding on cross-border aspects where foreign entities or finances are involved
• Troubleshooting issues that arise before, during, or after the completion of a deal
• Assisting with dispute resolution if conflicts develop during or after the transaction

Local Laws Overview

Acquisition and leveraged finance in Kyiv, Ukraine operates within a framework shaped by national legislation and, often, international market practice. Key considerations include:

• The Civil Code of Ukraine and the Law on Securing Creditors’ Rights set the foundation for loan and security agreements
• Regulations by the National Bank of Ukraine impact cross-border lending, particularly currency control and licensing requirements
• Anti-monopoly law may require approval from the Anti-Monopoly Committee of Ukraine for larger transactions
• Corporate law provisions under Ukrainian company law define procedures for approving acquisitions and obtaining shareholders’ consents
• Taxation issues, such as withholding tax on interest payments to non-residents, can significantly affect deal structuring
• Recent reforms have aligned many Ukrainian laws with EU standards, but local requirements must still be met in full

Frequently Asked Questions

What is leveraged finance?

Leveraged finance refers to the use of borrowed funds, often involving secured or structured loans, to acquire another company or asset. In Ukraine, these transactions often utilize both local and international lenders.

What legal documents are typically required for acquisition finance?

Standard documentation includes a facility agreement, security documents (pledges, mortgages, guarantees), intercreditor agreements, and sometimes equity arrangements or share purchase agreements.

Are there restrictions on foreign lenders providing finance in Ukraine?

Foreign lenders can provide finance, but the transaction must comply with Ukrainian currency regulations and may require registration with the National Bank of Ukraine, especially for cross-border flows.

What assets can be used as collateral in Ukraine?

Common types of collateral include shares, real estate, equipment, bank accounts, contractual rights, and inventory, subject to proper registration and compliance with local law.

Is approval from Ukrainian authorities required for acquisition finance deals?

Certain deals, especially large ones or those involving sensitive sectors, may require approval from the Anti-Monopoly Committee or other regulatory bodies.

What are the typical tax implications of leveraged finance in Ukraine?

Interest payments to non-resident lenders may attract withholding tax unless reduced by a double tax treaty. Tax structuring is important to ensure efficiency and compliance.

What is the role of due diligence in acquisition finance?

Due diligence helps identify financial, legal, and operational risks associated with the target company or asset, and informs proper structuring and risk mitigation.

How long does a typical acquisition finance transaction take in Kyiv?

Timing varies depending on complexity, regulatory approvals, and negotiations, but most deals take several weeks to several months from initial discussions to completion.

How can local law firms assist international lenders?

Ukrainian law firms frequently advise on local law aspects, prepare documentation, ensure registration of securities, and coordinate with notaries or government offices as needed.

What should I do if a dispute arises after closing?

Disputes can be resolved through negotiation, mediation, arbitration, or Ukrainian courts, depending on the terms set in the contract. Legal counsel should be contacted immediately.

Additional Resources

If you need further information or assistance, the following resources may be useful:

• National Bank of Ukraine - for regulations on foreign currency borrowing and registration
• Anti-Monopoly Committee of Ukraine - for matters related to competition clearance
• Ministry of Justice of Ukraine - for registration of pledges and mortgages
• Ukrainian Bar Association - for finding qualified legal professionals
• Chamber of Commerce and Industry of Ukraine - for business and investment support

Next Steps

If you are considering an acquisition or leveraged financing transaction in Kyiv, Ukraine, it is recommended to:

• Engage a qualified Ukrainian lawyer with experience in banking and finance transactions
• Prepare a list of objectives and requirements for your transaction
• Ensure confidentiality and seek legal advice before disclosing sensitive information
• Discuss potential structures and tax implications early in the process
• Request a clear timetable and description of expected legal fees and processes
• Take proactive steps to address regulatory or compliance requirements

With professional guidance, you can navigate the complexities of acquisition or leveraged finance in Ukraine efficiently and minimize risk.