Bank Pekao acquires certain assets and rights, as well as certain liabilities of Idea Bank, in the course of a resolution process commenced by the Bank Guarantee Fund

Rymarz Zdort has advised Pekao in the acquisition of certain assets and rights, as well as certain liabilities of Idea Bank, in the course of a resolution process commenced by the Bank Guarantee Fund.

The Bank Guarantee Fund’s decision to initiate the resolution process of Idea Bank is the first instance of resolution instruments being applied with regard to a Polish commercial bank listed on the Warsaw Stock Exchange.

The transaction involved the assumption by Pekao of the rights and assets constituting the enterprise and liabilities of Idea Bank, with certain exclusions, as stated in the relevant decision of the Bank Guarantee Fund.  The value of the liabilities assumed by Pekao is PLN 14.6 billion.

Pekao received support in the form of a subsidy from the Bank Guarantee Fund to cover the difference between the value of the liabilities being assumed and the value of the acquired rights and assets. Furthermore, the Bank Guarantee Fund provided a loss-coverage guarantee to Pekao with regard to the losses resulting from the risk associated with the acquired assets, rights and liabilities.

In the course of the precedent-setting transaction, Rymarz Zdort provided comprehensive legal services to Pekao and was responsible for preparing the entire transaction documentation.

The transaction team was led by Dr hab. Łukasz Gasiński, a corporate partner and head of the regulatory practice, and Magdalena Pyzik-Waląg, a corporate partner and head of the restructuring, bankruptcy and distressed assets practice.

The transaction team also included Jerzy Bombczyński, corporate counsel and member of the banking and finance team and the restructuring and bankruptcy practice, Anna Krzanicka-Burda, a senior associate in the corporate department and member of the restructuring and bankruptcy practice, Szymon Cieniawski, an associate in the corporate department and member of the regulatory practice, Anna Aranowska, an associate in the corporate department and member of the regulatory practice, and Aneta Kmoch, a litigation associate.

Iwona Her, a corporate partner and head of the antitrust practice, provided support on state aid issues and competition and consumer protection law.

Additional advice in the course of the transaction was provided by the following specialists: Marcin Chyliński, a corporate partner, Dr Jakub Zagrajek, a corporate partner, Monika Kierepa, a corporate partner, and Krzysztof Sajchta, a litigation partner.