HSH Nordbank Sold to Private Investor Consortium

March 6, 2018

Willkie represented investor GoldenTree Asset Management in the transaction.

The German federal state owners of HSH Nordbank agreed to sell the bank for €1 billion to a consortium of private investors including independent affiliates of Cerberus European Investments, J. C. Flowers & Co., GoldenTree Asset Management, Centaurus Capital LP and BAWAG. The sale will transfer 94.9 percent of HSH to the investors and is the first successful privatization of a federal state bank in Germany.

The closing is expected to occur in the second or third quarter of 2018 and must receive approval of the European Commission and the European Central Bank.

During the course of the privatization, the bank will carve out nearly all non-performing loan legacy assets for transfer to an acquisition vehicle, purchased by affiliates of Cerberus Capital Management, J.C. Flowers & Co., GoldenTree Asset Management and Centaurus Capital LP.

GoldenTree is an employee owned asset management firm that specializes in asset classes including high yield bonds, leveraged loans, distressed debt, structured products, credit-themed equities, private equity and emerging markets.

Willkie represented GoldenTree in the transaction. The Willkie deal team was led by partners Gordon Caplan and Georg Linde and included partners Dr. Patrick Meiisel and Susanne Zuehlke; national partner Dr. Bettina Bokeloh; and associates Wolfgang Münchow, Erik Göretzlehner, Manuel Köchel, Ilie Manole and Philipp Heuser.