Clifford Chance has advised the Mercator Group on the successful implementation of its EUR 1.1 billion financial restructuring. The Mercator Group (listing: MELR.LJ) is a leading supermarket and consumer goods chain with over 1,585 stores spread across Slovenia, Bosnia and Herzegovina, Croatia, Montenegro, Republic of Srpska and Serbia. With sales of approx. EUR 3 billion and employing over 20,000 people, Mercator is one of the largest corporate groups in South Eastern Europe.

Mercator's financial restructuring is one of the most extensive, complex and challenging financial restructurings ever seen in the region. The capital structure previously consisted of over 150 predominantly bilateral facilities and finance leases with well over 50 financial creditors. Mercator, together with its financial creditors have taken the major step of moving to consolidated sets of financing terms and common decision making platforms, documented in line with international best practices.

The Clifford Chance team was led out of Frankfurt, a key hub for the Firm's Central and South-eastern European practice. Lead partner Loren Richards commented: "Many regional corporates have historically financed themselves with a large number of bilateral financings. This certainly has merits. However, if co-ordinated discussions are required with creditors, this dynamic can also create strategic and operational headaches at the best of times, let alone in a restructuring context". Even though macro-economic circumstances remain challenging, this landmark financial restructuring is already being referred to as a defining moment for restructurings (as well as the broader investment landscape) in the region. Loren adds: "Management and their creditors have achieved something truly great and simultaneously demonstrated the regional market's willingness and ability to address issues and to pursue solutions that adopt international best practices

Clifford Chance is delighted to have been a part of this great team effort by all involved."

The Clifford Chance team was led by partner Loren Richards (Banking & Capital Markets, Frankfurt) and comprised partner John MacLennan (Restructuring & Insolvency, London) and associate Lauren von Dörnberg (Banking & Capital Markets, Frankfurt) – all English law. Financial advisor to the Mercator Group was Lazard (London/Frankfurt). Lead local counsel to the Mercator Group was Jadek & Pensa (Ljubljana). The lender steering committee was advised by Schonherr/Houlihan Lokey.