Badea Clifford Chance, the Bucharest Office of the largest law firm in the world is not affected by the international financial crisis, claim its representatives.

"The transaction-related practice has decreased in extent and we are involved in fewer, but more complex transactions. In moments like these, investors tend to prefer the firms enjoying a more consolidated practice and not particularly the firms offering lower fees ", stated Daniel Badea (photo), Managing Partner of Badea Clifford Chance. He claimed that the first serious signs of the crisis occurred on international markets more than one year ago and certain transactions that were sensitive to international markets have actually been placed "on hold". "There are a few IPO’s and certain major real estate projects that shall probably not be completed within the next 12 months", claimed Daniel Badea.

Generally speaking, claims the lawyer, companies are faced with the trouble of obtaining financing from banks for their new projects or to continue the already existing projects; under such circumstances, they may choose to either freeze such projects for a period of time, or to look for alternative financing sources, such as private equity, joint-ventures, mezzanine finance, however, such financing alternatives are harder and harder to find.

"The impact of the international financial crisis has affected Romania as well, different fields being affected in different ways. The most affected are the issue of share/IPO and transactions in the real estate field. For example, in real estate, the banks and investors are more selective now, the developer and financer/investor negotiation position is rebalanced, transactions last longer and are more expensive. Generally, one may notice more caution of the persons providing the financing - >", explained the Managing Partner of Badea Clifford Chance. The lawyer thinks that, generally, the economic growth shall decrease, there shall be a financing pressure for business that are not so competitive and a pressure on the profit margins as the consumption shall drop. Consequently, the economic efficiency shall be under pressure.

However, Badea Clifford Chance’s businesses will grow even under these circumstances. "We grew every year in a percentage of 80% to 120%. This year we intend to grow by 30% and the budget has already been exceeded - for us, the financial year commences in May 2008 and ends in April 2009. But it is risky to forecast a similar growth for the next year", showed Daniel Badea.

In September, Badea Clifford Chance provided legal assistance services in favor of UniCredit Tiriac Bank, for the loan of EUR 124.8 million granted by this bank to Palas 1, a company member of Iulius Group. It also assisted, in July, Credit Suisse and UBS in relation to Romania’s issuance of Eurobonds worth EUR 750 million. The value of the loan granted by UniCredit Tiriac Bank for Palas project amounted to EUR 124.8 million. The Clifford Chance team which ensured the legal assistance in this project consisted in 10 lawyers, led by Daniel Badea, Managing Partener, and by John Fenemore and Andreea Sisman, Senior Associates.

In Romania, Clifford Chance opened, on 19 June 2006, an office in association with Badea&Asociatii, a firm active on the local market since 2002. The Bucharest office currently has five partners and 50 associates, being included in the Central and Eastern Europe area of Clifford Chance, which already has offices in Budapest, Moscow, Prague and Warsaw. The firm has also recently opened an office in Kiev.

Badea Clifford Chance has been constantly involved in complex transactions of syndicated loans, project finance, Eurobond and share issuance on the international capital markets, derivatives, company acquisitions by strategic investors or private equity funds, leverage buy out transactions, infrastructure and highway projects, real estate investments, etc.

Badea Clifford Chance ranges the first in the top of Romanian law firms according to the most recent edition of Legal 500 (2008) under the sections Banking & Finance and Real Estate, as well as in the latest edition of Chambers and Partners (2008) under the Banking & Finance section. In the 2009 edition of IFLR 1000 report, Badea Clifford Chance was placed in the first tier as concerns the capital markets sector.

BizLawyer Team