IFLR 1000
The Guide to the World's Leading Financial Law Firms

The last twelve months have seen minimal improvement in the Slovak Republic. "The trend is still restructuring and refinancings," one partner says. To unpack a particular tendency, it is important to note that in Slovakia, informal workouts take precedence over any organised approach. "It's more bilateral waivers or changes," one partner says, adding: "In Slovak law there is no coordinated outside court solutions [it works as] informal restructurings and amendments. On the other side here [in court], restructuring is formalised."

Despite dominant trends continuing, it is important to note that the market has not been static and slight moves have been detected in a number of pertinent areas. "New financing is slowly picking up. With some new loans and new investments it is picking up," one partner says. In particular, acquisition finance, a class of finance that is traditionally difficult to come by in Slovakia, has shown an upturn. "Acquisition finance is from investors abroad. It is something partially driven by the local market as banks have no appetite for large loans, it pushes investors to finance [from] outside. Liquidity is not a big deal. Most banks have a parent company with problems outside the country and it influences the attitude to lending on this market," one partner says. Nevertheless, banks are still highly cautious and evaluate prospective projects in great detail before commitment. In fact, at the start of the year, similar to the Czech Republic, the banks interest was directed towards solar financing. However, on both the scale of the financings and concomitant tariff problems, the Slovak Republic was merely a microcosm as "renewables legislation was amended with no new projects and subsidies cancelled", according to one partner.

There has definitely been new money movement in the real estate sector but it is difficult to gauge just how significant this shift is. "It's a slow market on real estate. It started in the second half of last year with the finance of a shopping mall which died off. Several retail projects in the pipeline re-launched after being on ice during the crisis. In real estate, generally on financing, banks provide corporate financing in simple forms," one partner says. Another partner notes: "It's an interesting year, in new money deals, especially in the real estate sector. Definitely, major real estate developers sense the wind is turning and refresh temporarily abandoned projects, [there is] new money work from last summer it's constantly increasing but has not reached the level of pre-crisis, but it's positive".

With regard to highway infrastructure, the Slovak Republic has experimented with the PPP (public-private partnership) model. Under the previous government, three PPP projects started in 2008 and work still continues on completing a 50km plus section of the R1 between Nitra and Banská Bytrica. The other two (completion of the D1 motorway, connecting Bratislava and Kosice) were cancelled by the new Slovak government in 2011. The purchase of these works is presently undergoing the traditional public sector procurement process and the cost of the motorway development is expected to be met from the state budget and EU funds. Looking ahead, the Slovak government plans to employ the PPP model as an auxiliary method for motorway financing, especially for the completion of the D4 motorway (Bratislava bypass and the R7 highway between Bratislava and Samorín). To complete these projects, the government has even considered using a demand-based model. The construction is likely to start in 2014. "There were scandals, with some PPP projects being investigated. Huge funds [were involved]. The government is careful," one partner says.

The capital markets have been extremely quiet. With little equity activity to speak of, the debt capital market has only seen movement with regard to sovereign bond issues. "The government is very active on these markets," one partner says, with another adding: "Historically, it is extremely underdeveloped. There is no culture of raising money via private enterprises. The only interesting deals are those where a public entity acts as an issuer, the Slovak Republic raises money on the local market or through cross-border issues".

Allen & Overy is solid and seemingly entrenched at the top of the legal market in the Slovak Republic. The firm's status among the market's elite remains unchallenged and it backs up these claims with evidence of the consistent ability to attract the market's leading mandates. "Allen & Overy continue to be active on bank mandating. [They] compete on the largest bank mandates. On financing they are top competitors," says one rival. "Certainly in banking and finance they are visible on the market and participate in the big deals. But, they only concentrate on the big ticket financings," another rival says. "Allen & Overy are good; keep them in tier one because I know they are really involved in big banking transactions. When I meet bankers they always speak of A&O," one partner says.

Furthermore, the firm's clients have been delighted by the quality of service they receive from the firm. "We have very good experience with A&O; we have worked on several files. They are flexible, are open to listening to the needs of their clients, this is my experience," says one client. "They have [a] very compact banking team with strong individuals and [a] unique department head," says one client, adding: "They are always prepare[d] to discuss about new solutions or concepts. A lot of their concepts arise from deep knowledge. In my experience, they are oriented at the same good level in the project finance as in any other kind of financing (e.g. financing of large corporate clients)".

In the last twelve months, the firm has continued to generate volume and quality as it is involved in some of the market's highest value instructions. The firm advised a club of banks that included Tatra banka, Vseobecná úverová banka and UniCredit Bank Slovakia on an up to €180 million senior dividend recapitalisation credit facility provided to one of the largest private equity sponsors in CEE (Central & Eastern Europe), an investee company of Penta Investments, Cyprus. Additionally, the firm acted for a club of banks consisting of Tatra banka, Vseobecná úverová banka and Hypo Noe Gruppe Bank on €110 million senior term and revolving credit facilities for financing the development of a retail, hotel, and office project in Central Bratislava.

The impressive Renátus Kollár has won the admiration of clients and peers alike. In May 2011, Renátus was promoted to partnership and takes the helm as the head of the firm's banking and finance practice in Bratislava. "Renátus Kollár has very intensive understanding for banks and the lender´s side in general," one client says. "Renátus Kollár is good," one partner says. Moreover, associate Peter Kubina has also been drawn out for praise. "Peter´s thinking is similar to a chess player's thinking, he always think[s] two or three steps forward in contrast to his counterparty," one client says. "He's one of their financing workhorses," another partner says.

White & Case is another of the international brands that dominate the Slovakian legal landscape. In the Republic, it is very apparent that it, along with Allen & Overy, is involved in the leading deals the market has to offer. "It's clear cut, the distinguishing factor [is that both firms] keep the brand and flavour of truly integrated global firms," one partner says. "[White & Case is a] international office and profit[s] from their network," another partner says. Nevertheless, appraisal of the firm's proficiency in finance hasn't been subject to unqualified praise. "Their team in Bratislava is quite limited. Very often they cooperate with other offices. Often its cross-border financing," one partner says. "White & Case's M&A and corporate team is much better [than] finance," another partner says.

Nevertheless, clients have been in no doubt as to the firm's finance capabilities. "They're a first tier supplier for us. They deliver excellent work. They're the preferred choice," one client says. Partner Marek Staron and associate Stanislava Valientová have been subject to praise from clientele. "They're people we're happy with. They're very accessible and when you call they're ready to help," one client says.

Despite reservations being held as to the firm's banking and finance practice; White & Case's deal list is imposing. The firm recently acted as an advisor on three bond issues, with an aggregate value of €4.25 billion, by the state. It advised a syndicate of banks, as joint lead managers, including HSBC, Société Générale and UniCredit Bank Slovakia in the first transaction and CSOB, Slovenská sporitelna and VÚB in the second. The firm then advised Barclays Capital, Deutsche Bank and ING in the third transaction. The three issues were efficacious, enticed interest from investors and were substantially oversubscribed. Additionally, the firm is currently supporting the European Bank for Reconstruction & Development (EBRD) in connection with its implementation of the second phase of "Slovak Energy Efficiency and Renewable Energy Finance Facility – SLOVSEFF II". This financing program, at over €120 million, was launched in collaboration with the Slovak Ministry of the Economy to support the construction of sustainable energy sources in the Slovak Republic.

In summary, the firm's established experience inspires confidence among its clients. "They have done most of the transactions in Slovak Republic, so they've developed an understanding for banker's typical needs, or they learn it really fast," one client says.

With its banking and finance practice headed by partner Michaela Jurková, Cechová & Partners has a strong domestic presence on the market. This local firm is solid and has built itself a sound reputation on the market. "They're a respected local law firm," one peer says, adding: "They're certainly on the market and very respected". "[They're among the] firms that try to replicate international ways of deal making," says another partner, adding: "[A] decent firm, good quality but banks know they are different. They can handle complex cases."

Clients have described the firm as "good value for money" and Michaela Jurková is drawn out for praise. "Michaela belongs to the top," says one client, adding: "Michaela used to be a company lawyer and she knows well what we need".

The firm has been involved in some notable instructions and advised Barclays in regard to MCP documentation. Additionally, it is advising Credit Suisse with regard to the release of existing (and the establishment of new) security documents in relation to financing restructuring. This involves the replacement of a senior and mezzanine facilities and intercreditor agreements with one single facility agreement. Furthermore, Katarína Cechová advised FCE Bank with regard to a wholesale finance facility agreement.

This tough domestic brand is perceived as the market's cost efficient alternative. "[It's] a local firm that's definite on financing," says one competitor, adding: "Local firms compete against them on smaller financings."

Ruzicka Csekes/CMS Cameron McKenna continues to grow in stature and consolidates its position in the second tier. The firm has been very busy in the market and in association with CMS Cameron McKenna, it brings a bustling vibrancy to its work. However, some commentators have noted that CMS's absence of thorough integration in the Slovak Republic prevents clients from accessing the full gambit of its network. "CMS is more of a franchise type than the full integrated approach. It's a purchase of the international brand but with the prevalence of local attributes," one competitor says. Other competitors state, somewhat on the other hand, that Ruzicka Csekes relies too heavily on the CMS network. "Ruzicka is not a leading financing firm but the deal list might justify this. Their financing work is focused on referral stuff from other CMS offices". Regardless, with its broad local client base, the firm is not geared exclusively to high value transactional work, but it does possess the ability to undertake big-ticket and cross-border finance. Indeed, it is a salient feature that the firm covers areas beyond pure finance and advises banks on regulatory and structural matters.

The firm is renowned for its real estate finance and is currently involved in one of the largest ever real estate financings in Slovakia advising KBC Bank as lead lender on the €500 million financing of Eurovea, a brand new district in the heart of Bratislava, being created on the banks of the Danube. Additionally, the firm advised the Ministry of Transport on the D1 (Package No 1) and D1 (Package No 2) PPP (public-private partnership) projects. It advised the state throughout the procurement process (including financing and financial close) of the two major PPP road projects, at €2 billion each, in Slovakia. "At Ruzicka, Ján Azud [is a leading individual]. I know he was involved as [the] lawyer for representing Slovakia in [the] PPP," one partner says.

In terms of numbers, Cernejová & Hrbek is one of the largest firms in the Slovakian market. Led by Alena Cernejová, its banking and finance practice has been a dominant domestic presence for a number of years. "In tier two, all the good big Slovak firms have worked with Cernejová," one partner says. Another partner says: "They are used more by international firms who do not have a presence in Bratislava...if [they] need Slovak law. This is their critical mass of work".

In transactional terms, Hamala Kluch Víglasky were very productive this year and advised Tatra banka on a €165 million bilateral financing for Slovenské elektrárne in order to finance the operational needs of the largest Slovak producer of electricity. This financing is expected to be among the largest in the country in 2011. "Hamala Víglasky is very well known," one partner says, adding: "Víglasky are active and well established. All the partners are well established. They were partners in White & Case". "Hamala is ex White & Case, they bring international expertise," another partner says. Nevertheless, the firm were hit by the departure of senior associate Jozef Semancin to Havel Holásek & Partners in April 2011. "Hamala is a local firm riding strong. They had a significant departure so their finance team weakened. It's tougher to stay on top of the game," one peer says.

Commentators have noted that Kinstellar is more visible on the M&A front. Nevertheless, it has received a number of notable instructions. The firm advised RBS on a €900 million syndicated refinancing of the European Directories Group, including Slovak Mediatel. "Linklaters took the global decision to withdraw and only kept the office in Warsaw but still try to cooperate," one partner says.

Salans Bratislava has developed a reputation for proficiency in real estate finance. This year, the firm advised Continental, a leading manufacturer of tires, brake systems, vehicle stability control systems and engine injection systems, with regard to its €2.5 billion refinancing. "Salans have a small presence in Bratislava. They are good in real estate...not heard much about banking," one partner says. "Salans are heavily focusing on real estate financings," another partner says.

The last twelve months saw Squire Sanders & Dempsey amid internal troubles. "Squire Sanders has had a rough year. It lost its local team. I'm not sure how they'll rebuild," one partner says. The Bratislava office has now hired Tatiana Prokopová as a European partner focusing on real estate. "With Squire, Adrian Barger and some other guy [Roman Prekop] established their own boutique now [Barger Prekop Attorneys]," another partner says.

Commentators note that Weinhold Legal's finance practice lacks the bite of its M&A department. "Weinhold are visible, not in banking and finance but in corporate," one partner says. Of late, the firm provided full-service advice to BRE Bank/mBank in its establishment of a presence in the Czech and Slovak Republics. "In financing, I don't see [it] as local counsel. Their mandates are probably in smaller segments," one partner says.

The Austrian firm Wolf Theiss is attempting to build itself market share in Slovakia. The dark horse of the market, it will be interesting to follow the firm's progress in the coming editions. The firm is presently advising an international bidder consortium with regard to the public tender by the Slovak Ministry of Transport regarding the €2 billion financing, construction and operation of the D1 highway, one of the largest Slovakian PPP (public-private partnership) projects. "They are visible along with some Czech firms that are trying to establish themselves on the market," one partner says.