Understand Your Rights. Solve Your Legal Problems
Germany’s small businesses are the most optimistic about their own economy according to the inaugural Global Business Monitor report from international business funder, Bibby Financial Services (BFS).
Nearly three-quarters (73%) of German SMEs say their national economy is performing well in the global study that surveyed business owners in the US, Germany, UK, Poland, Hong Kong and Ireland.
More than two thirds (67%) of Irish SMEs are confident about the local economy. German and Irish SMEs are also most confident about the future with 57% of SMEs in both markets expecting sales to grow in the year ahead.
Conversely, less than one in five businesses in Hong Kong (15%) say they are confident about their local economy, with less than a quarter (24%) expecting sales to increase in the next 12 months.
Steve Box, International CEO of Bibby Financial Services said: “Germany is often seen as the industrial beating heart of Europe. Our research underlines the confidence of the small businesses in Europe’s largest economy as the EU looks to agree its shape post-Brexit.
“It is a different picture for the economy in Hong Kong where the majority of business owners are pessimistic about future sales and the local and global economies.”
The study reveals the sentiment of global SMEs in areas such as investment, confidence, challenges and opportunities, overseas trade and payment terms. In relation to international trade, findings show that small businesses in Hong Kong are three times as likely (69%) to export as those in the UK (22%) and seven times as likely as in the US (10%).
Steve added: “Due to its geographical location, Hong Kong is an important gateway to trading activities between China, the US and Europe. Its economy is highly export driven and this may explain why confidence is subdued during a time of economic change and significant currency fluctuation.”
Across the study, almost a quarter of businesses (24%) said that foreign exchange fluctuations are the biggest challenges they face in relation to international trade. For SMEs in Poland and Hong Kong, figures rose to 46% and 37% respectively.
Despite pockets of confidence in their local economies, the research reveals that nearly three-quarters (73%) of all SMEs have concerns about the global economy, with those in the US (83%) and Ireland (82%) the most concerned.
Steve concluded: “It’s clear that confidence in the global economy has suffered due to macro-economic and geo-political events in the last six months. The real question is for how long will confidence be affected?
“It is likely that the UK’s formal exit from the EU – commencing with the triggering of Article 50 by the end of March next year – will have further economic consequences that will be felt around the world.
“As the world shapes itself with a new US president and an EU without the UK, it is those small businesses that can adapt to changing domestic and international trading conditions that will be best placed to profit and grow in 2017.”
Other key findings of the Global Business Monitor report include:
Challenges
Investment
Payment terms
Manufacturing (39 days) and construction (40 days) businesses typically wait longest for payment when compared to other industry sectors.
(Source: Global Business Monitor)
The judicial decisions of the European Court of Human Rights (ECtHR) have been predicted to 79% accuracy using an artificial intelligence (AI) method developed by researchers in UCL, the University of Sheffield and the University of Pennsylvania.
The method is the first to predict the outcomes of a major international court by automatically analysing case text using a machine learning algorithm. The study behind it was published today in PeerJ Computer Science.
“We don’t see AI replacing judges or lawyers, but we think they’d find it useful for rapidly identifying patterns in cases that lead to certain outcomes. It could also be a valuable tool for highlighting which cases are most likely to be violations of the European Convention on Human Rights,” explained Dr Nikolaos Aletras, who led the study at UCL Computer Science.
In developing the method, the team found that judgements by the ECtHR are highly correlated to non-legal facts rather than directly legal arguments, suggesting that judges of the Court are, in the jargon of legal theory, ‘realists’ rather than ‘formalists’. This supports findings from previous studies of the decision-making processes of other high level courts, including the US Supreme Court.
“The study, which is the first of its kind, corroborates the findings of other empirical work on the determinants of reasoning performed by high level courts. It should be further pursued and refined, through the systematic examination of more data,” explained co-author Dr Dimitrios Tsarapatsanis, a Lecturer in Law at the University of Sheffield.
The team of computer and legal scientists from the UK, alongside Dr Daniel Preoţiuc-Pietro from the University of Pennsylvania, extracted case information published by the ECtHR in their publically accessible database.
“Ideally, we’d test and refine our algorithm using the applications made to the court rather than the published judgements, but without access to that data we rely on the court-published summaries of these submissions,” explained co-author, Dr Vasileios Lampos, UCL Computer Science.
They identified English language data sets for 584 cases relating to Articles 3, 6 and 8* of the Convention and applied an AI algorithm to find patterns in the text. To prevent bias and mislearning, they selected an equal number of violation and non-violation cases.
The most reliable factors for predicting the court’s decision were found to be the language used as well as the topics and circumstances mentioned in the case text. The ‘circumstances’ section of the text includes information about the factual background to the case. By combining the information extracted from the abstract ‘topics’ that the cases cover and ‘circumstances’ across data for all three articles, an accuracy of 79% was achieved.
“Previous studies have predicted outcomes based on the nature of the crime, or the policy position of each judge, so this is the first time judgements have been predicted using analysis of text prepared by the court. We expect this sort of tool would improve efficiencies of high level, in demand courts, but to become a reality, we need to test it against more articles and the case data submitted to the court,” added Dr Lampos.
(Source: University College London)
What happens to employees when a company goes bankrupt?
Recently, Fox News reported the dilemma faced by both business and employees when a large enterprise runs out of cash. While employees are usually worried about covering the bills, maintaining health insurance coverage and filing for unemployment, crew members onboard ships owned by Hanjin Shipping face much larger problems. Dozens of Hanjin ships holding billions of dollars in goods are anchored at sea, unable to come to port for fear of seizure.
Hanjin Shipping, the world’s seventh largest shipping business, has been faltering for months; now that they have actually gone for bankrupt, the South Korean business has 40 ships left stranded at sea. Those boats aren’t empty; current estimates reflect about $14 billion in inventory and a full host of employees as well. The ships are slowly going through their available food, water and supplies as the company struggles to find ports that will accept them – without seizing their assets.
Hanjin Shipping’s bankruptcy has left both employees and cargo adrift; the massive carrier ships are anchored offshore and slowly running out of food and water for the castaway employees. With no way to dock, those workers are stuck onboard the ship with no way to get home; the company has not revealed a plan to pay these employees or a plan for getting the workers back to their home ports. In addition to the employee crisis, each ship’s cargo holds are also bursting with consumer goods, from Nike sneakers to Samsung electronics, which may not make it to retailers in time for the busy holiday shopping season.
Why Can’t the Hanjin Ships Dock?
Hanjin is deeply in debt, to the point that they can’t actually bring the ships into ports; the company has not paid the workers who would normally unload the cargo or the rail and land shipping businesses that would deliver the goods to their destinations. The company fears that bringing these ships to port without paying the bills would result in the seizure of that cargo.
Those fears are well founded. At least one ship has already been seized for unpaid fuel debts, off of the coast of Long Beach California; this seizure came after a Federal bankruptcy judge ruled that the Hanjin ships could be seized by United States creditors.
According to National Retail Federation Vice President for Supply Chain and Customs Policy, Jonathan Gold, “Merchandise is in limbo at the moment and retailers are working hard to make sure it ends up on store shelves in time for the holidays.”
So far, Hanjin has enough capital to have four ships dock and unload in the United States, while almost a dozen other Hanjin ships are still at sea.
What about the Workers?
According to the International Transport Workers Federation (ITF), the remaining ships currently have enough fuel, food and water for the employees onboard, but Hanjin is already asking crews to conserve resources. The company is also making efforts to deliver supplies for those ships that are running out, according to a company representative.
Bankruptcy laws in some countries do allow governments to seize the ships and the merchandise they carry. As Hanjin Shipping goes through the process, the employees onboard its cargo ships are faced with more than the typical amount of uncertainty; they do not know when they will be able to come to port, disembark and return home or whether supplies will continue to arrive as promised.
The Hanjin Shipping bankruptcy raises significant questions about an employer’s responsibilities to employees when they are deployed to remote areas or performing at risk tasks far from home; who is responsible for safety and for getting those workers back home? The strange case of Hanjin Shipping is the first of its kind -- but may not be the last for the overcrowded and burdened shipping industry.
About the Author
Emory Clark is the lead attorney at Clark & Washington, LLC. Their Atlanta bankruptcy attorneys offer sound financial and legal advice in bankruptcy cases. Clark & Washington’s exclusive work on Chapter 7 and 13 bankruptcy cases allow them to advise and counsel their clients through each step of the process. Visit http://www.cw13.com/ to learn more.
(Source: Clark & Washington, LLC)
Companies who allow their customers to breastfeed in public should extend the same rights to their employees, says Tayside solicitors firm Miller Hendry.
The warning follows the high-profile case of airline company easyJet, which failed to accommodate requests from cabin crew to vary their duties in such a way as to enable them to express breastmilk so that they could continue breastfeeding after their return to work after maternity leave. Easyjet offered two members of its cabin crew six months of ground duties while they were breastfeeding. easyJet's argument was that continuing to breastfeed longer than six months was the employees' own choice. easyJet also failed to respond to a request to limit the length of shifts the mothers were to work from 12 hours to 8 hours.
Although easyJet recognised breastfeeding as being a right of passengers, the airline's position did not extend to crew, according to the complainants - both members of the trade union Unite.
An employment tribunal ruling found that easyJet's suggested solution amounted to discrimination. Unite's legal officer, Nicky Marcus, said the ruling had "wider implications for all working women".
Alan Matthew, employment specialist with Miller Hendry, said: "It's usually breastfeeding customers who make the headlines, with retailers and other service providers touting their openness to women breastfeeding, or being called out for not allowing it. But this case shows that employees are just as important when it comes to the rights of working mothers. This ruling is a lesson for all employers and how they treat their female employees."
(Source: Miller Hendry)
This afternoon, Uber drivers won the right to be classed as workers rather than self-employed.
The ruling by a London employment tribunal means drivers for the ride-hailing app will be entitled to holiday pay, paid rest breaks and the National Minimum Wage.
Steven Eckett, employment solicitor at Gardner Leader solicitors:
The Employment Tribunal's decision to class these particular Uber drivers as 'workers' rather than 'self-employed' will have repercussions throughout the gig industry and is highly likely to lead to a rethinking of the employment status of these workers and with it, a clarification of their employment rights. It is also likely to impact on Uber drivers in the EU who are also bound by the Working Time Regulations.
Decision sheds clarity on definition of worker
The gig economy has thrived on companies using a pool of self-employed or freelance workers rather than directly employing them but this has, at times, led to a misunderstanding amongst various businesses over who is classed as self-employed and who is classed as a worker. The difference has a significant impact because workers in law have a range of employment rights that they are able to enforce.
People are classed as workers when there is a mutuality of obligation on the part of the business to provide work that these workers are obliged to undertake, with a degree of control by the business as to where, when and how the work is to be carried out. This contrasts with genuinely self-employed contractors who are usually free to accept or decline work.
Greater cost to the 'gig' industry and consumers
The employment tribunal's decision today certainly sheds clarity on the employment status of this new breed of ‘freelancer’ currently fuelling the growth of the UK gig economy. However, consequences of the judgment is likely to result in increased costs to the gig industry in order to comply with the new employment laws, and it's probable that these will be passed on to the consumer, such as through higher fees, delivery rates and prices for goods and services. The service industry like couriers, fast food delivery companies and portable cleaning operators are likely to be hit the hardest.
Workers, not to be confused with employees who have greater employment rights in law, are also entitled to minimum legal rights. These include for example, the right to claim unfair dismissal, to receive statutory sick pay maternity, paternity and parental rights; to be paid the national living or minimum wage depending if they are aged 25 or more; to have working time rights such as not to be forced to work more than 48 hours per week, regular rest breaks and night working health and safety standards; to receive a statement of terms and conditions of employment.
Further, Uber will need to have a qualifying auto-enrolment pension scheme in place and backdate any pension contributions.
There is also the issue of immigration. If those you hire are classed as workers then the burden to vet them will be on the business to ensure that all those individuals have the right to live and work in the UK. Failure to do so can lead to fines and ultimately criminal sanctions against the business and also the individual, not to mention the risk of bad publicity should the business fail to compile to any minimum legal employment rights.
Take action
Businesses concerned as to how this ruling may affect them should seek timely legal advice on their recruitment policies and procedures to ensure compliance with the law. It is also imperative that they issue written terms and conditions to these workers clarifying pay rates, hours of work, role and responsibilities, sickness provisions, holiday entitlement and health and safety and equal opportunity policies. It is also no good having a succession of fixed term contracts either to get around the law as after the fourth renewal of a fixed term contract it will be deemed to be permanent.
Kathryn Dooks, Employment Partner at Kemp Little LLP, said:
Two Uber drivers today won their employment tribunal claim against the “gig economy” app. The decision means they are classified as “workers”, entitling them to the National Living Wage (£7.20 / hour for drivers over the age of 21), paid holiday, sick pay and rest breaks, amongst other rights.
The claim revolved around the level of control exerted over the drivers by Uber. Uber claimed that the drivers were self-employed, choosing when and where they worked. It argued that many of the drivers wanted to be self-employed, so they could be their own boss and work completely flexibly. However, drivers can be suspended for not accepting enough rides or for low passenger ratings following a drive, leading to arguments about the nature of the relationship.
Uber faced similar claims across the USA and lost a case in California in 2015, leading the company to try to settle numerous other claims across the US earlier in the year. By contrast, the Florida Department of Economic opportunity previously ruled US Uber drivers were independent contractors, meaning the drivers were not eligible for unemployment insurance.
The outcome of the English employment tribunal case could have a significant impact on the business models of companies like Uber, Deliveroo and other apps which match service providers to customers. For this reason, the decision is certain to be appealed by Uber. In the meantime, Uber can expect a large number of claims from its drivers following this test case and other apps can expect similar claims. The courier firm City Sprint is already facing a hearing on the same point in November. No doubt many such businesses will be reviewing their working practices to see whether they can avoid the implications of the decision. But these attempts may be futile in the longer term as the government has announced an independent review of the law in this area, to be conducted by Tony Blair’s former policy chief, Matthew Taylor, which seems to signal a more interventionist approach.
Jamie Lester, Partner at Lincoln's Inn law firm Hunters incorporating May, May & Merrimans:
This is a decision which will no doubt be the subject of appeal and potential further appeal, given the huge ramifications to Uber’s current business model which might now be unsustainable.
(Sources: Gardner Leader, Kemp Little, Hunters)
A £333m scheme is set to be developed by UK-based Henry Boot property development group. The scheme will include a new conference and exhibition centre, a four star hotel and an energy centre. The contract, with Aberdeen City Council, has been agreed for a location adjacent to Aberdeen International Airport, on the 130-acre former Rowett Research Institute site.
The hotel is set to operate under the Hilton Hotels brand and received planning permissions at the end of 2015.
"We are delighted to have been selected by the Aberdeen City Council to develop the city's new exhibition and conference centre, four-star hotel and energy centre," said Jamie Boot, the Chairman of Henry Boot.
"We remain mindful of the challenges facing our industry after the result of the EU Referendum, taking into consideration this current market backdrop, we maintain a cautious outlook and as such the Board's expectations remain unchanged," he added.
As part of the contract, another 150-bedroom hotel has been planned and is set to be operated by the Aloft Hotels brand, subject to approval of planning permissions.
The site project has been appointed to the Robertson Construction Group and is expected to be completed in the first half of 2019.
In drafting and completing the contract, DLA Piper and Addleshaw Goddard served as legal advisors to Henry Boot, with teams led by Steve Edgecombe and Ben Peacock respectively.
Interview - Steve Edgecombe DLA Piper LLP:
Please tell me about your involvement in the deal?
I was approached by Henry Boot Developments in the summer of 2013, requesting DLA Piper act as replacement legal advisers, when they realised the significance and scale of the opportunity then in front of them. We initially helped with the bid documents. Following the award from Aberdeen City Council, we negotiated and finalised a promotion agreement based on a proposed forward funding solution for the core conference centre, with the Council funding the external hotel and energy centre. The complex interaction between various vested interests added to the intensity of the transaction. Negotiations and contracts changed shape as the Council re-evaluated its preferred structure, adding to complexities and requiring re-engagement with the owners of the land being acquired.
Why is this a good deal for all involved?
For Henry Boot, this very much puts them in the premier division for commercial development in Scotland. The incentivised profit arrangements are real drivers for our clients to now develop timeously and within budget.
For DLA Piper, we are delighted Henry Boot chose us as main legal advisers on such a significant UK development and, in fact, one of the largest development projects in Scotland in many years. Henry Boot needed to ensure they had the right commercially aware advisers and of course we were delighted to be entrusted with that appointment. For us, this is further validation that DLA Piper is the "go-to" firm for large scale complex property developments in Scotland, whether acting for developers, investors, or end users.
What challenges arose? How did you navigate them?
Inevitably, a deal such as this will always trigger multiple challenges. Through experience, a practical approach, and vast industry knowledge we worked hand in hand with our client to create optimum commercial solutions. Particular challenges included uncertain land rights and safeguarding the form of strip lease development and funding model required by Aberdeen City Council, before testing same in the investment market and adapting the model and documentation without need to return to the drawing board once the Council determined to self-fund.
Montagu Private Equity (Montagu), a leading European private equity firm, recently announced the signing of a definitive agreement with Joh. Berenberg, Gossler & Co. KG and Bankhaus Lampe KG to acquire their stakes in Frankfurt-based investment company Universal-Investment. Both parties have agreed to not disclose the financial terms and further details of the transaction. The completion is subject to regulatory approval.
With EUR 280 billion in assets under administration, more than 1,000 mandates and funds as well as 650 employees, Universal-Investment is the largest independent investment company in the German-speaking region. With its three divisions – administration, insourcing and risk management – the company focuses on the efficient and transparent administration of funds, securities, alternative asset classes and real estate. Established in 1968, Universal-Investment is headquartered in Frankfurt/Main with subsidiaries and holdings in Luxemburg and Austria. As pioneer of the investment industry Universal-Investment is today market leader in the areas of master-KVG and private label funds.
Universal-Investment has been among the fastest growing investment companies in Germany and Luxemburg, having quadrupled its administered assets from EUR 70 billion to EUR 280 billion in the previous ten years. This has been primarily driven by general wealth agglomeration and gain in market share. In addition, the company has entered into new areas of growth through its real estate and alternative investment segment. Here Universal-Investment has already structured real estate projects for institutional investors worth more than EUR 6 billion as well as projects in infrastructure, renewable energy, private equity and private debt worth more than EUR 15 billion.
The Regulatory Banking and Corporate team of Austrian law firm Brandl & Talos served in this deal as Regulatory Adviser to the buyer.
Roth extends its sanitary activities significantly. The Dautphetal-based manufacturer of glass showers and complete showers takes over the Czech company Roltechnik with approximately 150 employees. In Czech Republic the company has its headquarters in Třebařov and a further production site in Červená Voda. Further the manufacturer has a subsidiary in Slovakia.
Roltechnik is an established supplier of shower enclosures, steam showers, shower trays, bath tubs and jacuzzis. Czech Republic, Slovakia and Hungary belong to the core markets of the company which was founded in 1991. Until now the owner of Roltechnik was a Czech financial investor.
Dr. Anne-Kathrin Roth, Chief Marketing Officer (CMO) of the Roth Sanitary systems explained: “Roltechnik gives us immediate presence with our successful sanitary sector in markets, where we haven’t been before. The acquisition increases our manufacturing capacity and allows the enlargement of our product ranges. We transform to a full-range-supplier in the relevant product segments and create the basis for the further internationalisation of our business activities. Herewith the new production sites in Czech Republic as well as our site in Dautphetal-Buchenau will be further expanded.”
In the course of the takeover of Roltechnik, the manufacturer wants to exploit possible synergies.
With the expansion Roth completes its existing sanitary programme with further promising elements. The cross-linkage of the product ranges and the enlarged offer of Roth products will be realised fast and will be noticeable for customers very soon. At ISH 2017 Roth will already present new product ranges.
With the new site in Czech Republic new paths into Eastern directions open up for Roth. From there the company plans to have better access to the countries of Eastern Europe for its energy systems as well as for its water and waste water treatment technologies.
In this transaction, Ceska Sporitelna was advised by Clifford Chance, whilst Roth Industries was advised on the financing by Vostarek & Komeiserova.
Interview - Jakub Mudra - Vostarek & Komeiserova:
Please tell us a little about your work.
I joined Vostárek&Komeiserová at the beginning of this year; before that I worked for well-known reputable international law firm specializing for real estates. I participated there in many interesting transactions for Czech and foreign investors. At Vostárek&Komeiserová we provide services to companies that operate in German speaking countries. The next group we serve consists of important Czech players from industrial and commercial sectors. Our office has developed experience over 26 years, so we have rich experience in local markets, which for our clients is a significant advantage.
In general my specialization is corporate and real estate law. I have been involved in a wide range of different engagements, including vendor due diligence engagement, buy-side due diligence projects, development projects and industrial constructions, leases of large industrial or commercial areas, acquisitions, other contractual documentation, and also in financing.
Please tell me about your involvement in the deal?
My task was, together with Dr Vostárek and in cooperation with our German partners, negotiation of the terms of the transaction, and its timing, especially with regard to strategy and also due diligence agenda. In the case of financing it especially involved negotiation conditions and review of contractual documentation prepared by Clifford Chance for the financing bank.
Why is this a good deal for all involved?
The transaction significantly extended the sanitary activities of Roth group, as Roltechnik holds a very strong position in the CEE markets. This move also opens up various Eastern markets for Roth. For Roltechnik this transaction secured a stable parent company, which is still managed as a family business. This allows the company to help with the mounting of Roltechnik on the market and suitable support for mutual growth.
What challenges arose? How did you navigate them?
All in all it was a really smooth process. In such transactions difficulty lies in the crucial timing of the entire process. All parties wished to conclude a transaction and therefore it was not a big problem to come together constructively and everything happened as planned.
GoDaddy Inc. (NYSE: GDDY), the world's largest cloud platform dedicated to small, independent ventures, recently announced it has entered into an agreement to acquire ManageWP, the leading WordPress site management tool. ManageWP enables web designers and developers to manage multiple WordPress sites from a single dashboard, no matter where they are hosted.
WordPress is by far the most popular content management system for building websites globally, and over the past four years has doubled its market share to more than 50% according to W3Techs.com, August 2016. GoDaddy is the largest Managed WordPress provider and the acquisition of ManageWP demonstrates the company's continued investment in WordPress, and expanded support for the web designers and professionals who use it.
Managing multiple WordPress sites is a hassle for web developers and designers that service multiple client sites. Developers must log in to each site's dashboard to handle everything from regular maintenance tasks, such as updates, backups, and security, to publishing content and moderating comments.
With the acquisition of ManageWP, GoDaddy is the only provider of both best-in-class WordPress management and WordPress hosting solutions. GoDaddy now provides one place for web developers and designers to manage and maintain all their WordPress sites easily and efficiently, and to generate new recurring revenue streams to grow their businesses. ManageWP' s offering also includes site monitoring, backups, automated migration, deployment, publishing, client reporting and security features.
Active participation of all the parties spearheaded an efficient and structured agreement on key issues in a reasonable period of time. Highlighted by mutual trust and respect, teams from GoDaddy and Manage WP entered the venture with conviction that the project will be a growing success in the years to come.
In advisory, Motika Law Office’s legal team was led by the firm’s founder - Željka Motika - a seasoned attorney at law specializing in international commercial and IT-related transactions in the region.
Terms of the agreement were not disclosed.
Aleris Corporation, a global aluminium rolled products producer, recently announced that it has entered into a definitive agreement to be acquired by Zhongwang USA LLC, a company majority-owned and led by Mr. Liu Zhongtian, founder of China Zhongwang Holdings Limited (China Zhongwang, HKEX code: 01333). The aggregate value of Aleris amounts to $2.33 billion, comprising $1.11 billion in cash for the equity to be paid by Zhongwang USA, plus $1.22 billion in net debt.
Aleris will continue to be headquartered in Cleveland, Ohio, and will be operated as an independent entity. The Aleris management team will remain in place, providing continuity for Aleris employees and customers and supporting the continued implementation of the Aleris strategy. Aleris will retain its name and continue to serve its customers with no changes to current operations, contracts or commitments. It will continue with the implementation of all strategic growth projects, including its major expansion project in Lewisport, Kentucky, which will enable Aleris to meet the North American automotive industry's growing demand for aluminium auto body sheet.
The acquisition of Aleris reflects Mr. Liu's commitment to disciplined operating investments over the long-term in an industry to which he has been committed for two decades. In addition to his role at Zhongwang USA, Mr. Liu is also the chairman and founder of China Zhongwang, the second largest aluminium extrusions product developer and manufacturer in the world and the largest in Asia. With the acquisition of Aleris, Mr. Liu will now oversee companies that have complementary geographic footprints and capabilities.
The transaction is expected to close in the first quarter of 2017 following the customary regulatory approvals and closing conditions.
Credit Suisse acted as financial advisor to Aleris. Fried, Frank, Harris, Shriver and Jacobson, LLP acted as legal advisors. Moelis & Co. advised the Aleris Board on certain aspects of this transaction. Paul, Weiss, Wharton & Garrison LLP acted as legal advisors to Oaktree Capital Management.
In China Zhongwang were advised by Jincheng Tongda & Neal, whilst in New York, they were advised by Freshfields.
Interview - Peng Lingyan - Jincheng Tongda & Neal:
Please tell me about your involvement in the deal?
I am one of the leading partners responsible for this deal, advising Zhongwang on transaction structure, acquisition documentation, PRC regulatory approvals, PRC anti-trust filings and financing documentation.
Why is this a good deal for all involved?
The acquisition of Aleris will represent the single largest overseas acquisition by a Chinese aluminium processing enterprise, and an important milestone in Zhongwang USA’s “going global” strategy. The newly combined company is expected to be well positioned to tap into development opportunities in the Chinese and global market. Aleris’ financial investors will successfully realize their returns from the sale.
This is also a very interesting and challenging transaction for all parties involved; it has all the features of a complex cross-border transaction, and required all counsel to work closely and creatively with Zhongwang.
What challenges arose? How did you navigate them?
There were a few PRC regulatory approvals and filings required prior to the closing of this deal. We needed to work with Zhongwang to obtain these approvals and filings. The tight foreign currency control in China created significant difficulty for this transaction, as well as many other cross-border transactions. We explored all possible routes with Zhongwang to find a feasible solution.
