In cooperation with Paul Hastings, we came in as the Egyptian counsel to advise KfW IPEX-Bank GmbH (as Lender and Agent) in relation to a 43 Mio EUR export credit facility to be granted to Flex P Films SAE (Egypt) for the financing of three film lines in Egypt.
Our role included the envisaged credit facility, the following up on the documents that need to be obtained by the Borrower as conditions precedent, the first priority pledge over the securities of the Egyptian borrower and the real estate mortgage.
We also advised on the validity and enforceability of the obligations constituted under the security documents relating to the aforementioned securities and a capacity opinion in relation to the Borrower.
This deal involved many complexities among which were the registration of the commercial pledge in the borrower’s commercial register. This was due to a conflict between the laws and internal regulations upon which the Commercial Registrar was operating.
As a result of such a conflict, the lender, a foreign bank with no branch in Egypt, was not permitted to register its commercial pledge.
Our role in this case determined the solution to the problem on a wide platform; now it has become easier to register these types of pledges for banks that do not necessarily have operations in Egypt.
