OREANDA-NEWS. On 19 May 2009 was announced, that Hogan & Hartson advised Eldorado Group (Eldorado) on Russian and international tax aspects in connection with a series of complex debt-to-equity conversion transactions resulting in the establishment of a joint venture with PPF Group, the Czech Republic’s largest international financial and investment group.

Hogan & Hartson lawyers advised Eldorado on tax structuring of the complex transaction, which included the acquisition of a significant stake in Eldorado by PPF Group for USDUSD 300 million by swapping part of the credit earlier provided to Eldorado. Additionally, as part of the debt for equity swap, PPF Group, through the joint venture, will acquire real estate properties, principally retail shops used in Eldorado business and other development projects in Russia from the portfolio of Mr. Igor Yakovlev, the principal shareholder of Eldorado.

Loan receivables amounting to approximately USDUSD 200 million, collateralized by real estate properties, will remain payable by Eldorado to PPF Group according to the original credit agreement signed in September 2008.

Eldorado is one of Russia’s and Eastern Europe's largest home appliances and electronics retail networks with 1,100 shops in Russia and CIS countries.

The Hogan & Hartson international team was led by Moscow partner Ilya Rybalkin and included London partner Jonathan Ivinson, London associates Rebecca Armour and Clare Smith, Moscow senior adviser Vadim Kukushkin, and Moscow associate Ivan Meleshenko.