CMS advises on the creation of mandatory fuel reserves
CMS has acted as legal advisor in the process of obtaining financing and securing against legal risks associated with the purchase and storage of diesel fuel for UNIMOT SA in light of the Polish Act on mandatory reserves of fuel. Funding for the purchase of the mandatory reserves has been provided by ING Bank Śląski SA and the storage for mandatory reserves will be covered by the largest national operator specialising in the storage and handling of fuels – Operator Logistyczny Paliw Płynnych (OLPP).
“The transaction was very complex and required negotiations with several financial institutions. The new agreements will minimise the costs associated with fulfilling the requirements of the law on mandatory reserves, which directly translates into tangible cost savings for the company,” says Robert Brzozowski, President of UNIMOT SA.
The CMS team working for the fuel importer was composed of lawyers who specialise in funding and regulatory advice for the fuel sector.
“The success of this type of transaction is determined on the one hand by an understanding of the needs of companies that operate in the fuel sector, and on the other by a thorough knowledge of the Act on mandatory reserves. Only a combination of these two factors allows the proper protection of a business activity in terms of the law. Also it is important to be aware of the expectations of financing institutions, for which the proper conclusion of a warehouse agreement with a licensed operator is a very significant element of the transaction.” says Tomasz Zwoliński, Of Counsel and Legal Advisor in the Department of Banking and International Finance from CMS.
CMS’s work included negotiating financing documents with the banks financing UNIMOT SA as well as negotiations with OLPP in connection with the necessity to conclude a separate contract for the storage of mandatory reserves. The following lawyers were involved in the project: Tomasz Zwoliński, Of Counsel and Legal Advisor in the Department of Banking and International Finance, Adam Stopyra, Senior Associate in the Department of Banking and International Finance, Piotr Ciołkowski, Of Counsel and head of the regulatory team in the Department of Energy and Projects, as well as other CMS lawyers who advised on both Polish and English law.