The law firm Abreu provided legal assistance to the Efacec Group in the negotiation of a new financing with a banking syndicate composed of five Portuguese banks which was guaranteed by the Portuguese State.
This is the first state-backed financing involving a banking syndicate under the law that instituted the so-called public bank credit moratorium and which complies with the Temporary Framework approved by the European Commission regarding state aid measures to support the economy in the current context of the COVID -19 outbreak.
The autonomous guarantee provided to the banks by the public entity Norgarante amounts to 90% (ninety percent) of the loan amount.
This pioneering and highly complex operation that involved, in addition to the financing banks, also the Directorate-General for Treasury and Finance, the Treasury and Public Debt Management Agency, the Portuguese Mutual Guarantee Society, Norgarante and the State holding company Parpública, received the necessary approval from the State in the exercise of its shareholder function following the nationalization process of 71.73% of Efacec, is purported to allow Efacec to normalize its activity.
The Abreu team that advised the Efacec Group in negotiations with banks and public entities was coordinated by Manuel Santos Vítor, partner of the M&A and Corporate law practice and responsible for all corporate support, and by Rodrigo Formigal, professional partner in the Banking and Finance practice area and responsible for the support provided in the financing.