Newly-formed Luxembourg bank sees Mayer Brown in lead role

Mayer Brown has taken a lead role advising on the creation of Banque Havilland, a newly-formed bank emerging from the collapse of Iceland's Kaupthing Bank in Luxembourg.

The international law firm landed the instruction from the Rowland Family, a longstanding client, as it acquires Banque Havilland, which was formed through the court-sanctioned demerger of Kaupthing Bank Luxembourg.

Under local laws, Kaupthing Luxembourg has spun into two separate entities, with Banque Havilland created as a 'good bank' and the bank's distressed assets moved into a 'bad bank' through a special purpose vehicle securitisation structure.

Mayer Brown's City offices took the lead for the UK-based Rowland family, with corporate partner William Charnley heading a team including London corporate partner Richard Page, finance partner Stephen Walsh and regulation partners Nick Kynoch and Angela Hayes.

Franz Fayot of local firm Elvinger Hoss & Prussen acted as co-administrator alongside PricewaterhouseCoopers. The restructuring was designed by Kaupthing Lux management and the administrators, with Philippe Hoss taking an advisory role for the bank and the administrators.

The restructuring was a 100% Luxembourg law governed restructuring.

Banque Havilland will provide wealth management and private banking for high-net-worth individuals in Europe, Asia and the Middle East.

Walsh said: "This was one of the first successful private good bank/bad bank restructurings in Europe in the current downturn.

"My instinct is that there are still institutions out there with distressed assets which might be attracted by a good bank/bad bank solution. This [particular deal] was carefully crafted."

The deal also gave roles to Allen & Overy (A&O) and Clifford Chance (CC). A&O advised the international bank under Luxembourg capital markets counsel Nicolas Steichen, while CC's local office advised the Luxembourg Government.

A&O advised the interbank creditors of the bank, which were restructured under the court-approved plan.

The Rowland family has 45 years of investment experience and holds investments including Blackfish Group, which provides investment management and advisory services to private clients and investment funds.