Freshfields, Linklaters win settlement for lenders

Freshfields Bruckhaus Deringer and Linklaters have won a full settlement for a group of financial institutions in a case that threatened to derail cross-border restructurings.

As first reported by The Lawyer (1 August), German telecoms company Primacom stopped meeting payments on a €375m (£253.6m) loan and took its lenders to court in Germany, claiming that the interest rates on the loan were too high.

Under EU rules, the lenders, led by Apollo Management and advised by Freshfields and Linklaters, were unable to countersue until the case had been heard in Germany, even though the loan was governed by English law
In September a German judge ruled that the case must be heard in the UK. In light of this, Primacom has agreed to withdraw its litigation against the lenders and pay the loan in full by 30 November.

Partners David Ereira, Nils Koffka and Lars Westpfahl led the deal for Freshfields, while Michael Weigel led the Linklaters team. Ian Jack of Baker & McKenzie represented Primacom.