The Hungarian authorities are keen to address the high volume of non-performing loans ("NPLs") and their effect on the financial stability and long-term economic performance of Hungary. The European Bank for Reconstruction and Development ("EBRD" or the "Bank") supported the Hungarian authorities with identification of the main legal, financial and regulatory obstacles to NPL resolution. Consultations with local banks and other stakeholders, among others, revealed that the 'Budapest Approach' is not used in practice and that there is a lack of trust and cooperation among creditor banks.
The EBRD has been asked to support the activities of the Hungarian authorities on voluntary out-of-court corporate restructuring and now seeks to select and engage a consultant (the"Consultant") to assist with examining how the existing Budapest Approach to multi-creditor voluntary out-of-court corporate restructuring can be revived and made compliant with best international practice (the "assignment"). The Consultant will provide strategic direction through the provision of advice and guidance on best practice in the area of corporate restructuring and workouts.
The Consultant will be required to carry out the following main tasks:
1.Report on international corporate workout best practice, specifically preparation of a detailed report focusing on main international developments in corporate workouts and including reference to the INSOL principles including inter alia:
i) review and analysis of the different approaches to promotion of corporate workouts in Europe
ii) advice on an appropriate approach by the Hungarian authorities to encourage greater cooperation by local banks in corporate workouts that would best fit the Hungarian context
iii) address as part of its advice whether there should be a compulsory element to any such approach and
iv) propose how the relevant approach could be implemented within the Hungarian framework and any
consequential changes which might be needed to the corporate restructuring environment.
2. Participation in the meetings: the Consultant will be required participate in the principal meetings of a working group in Budapest and provide the working group with advice, based on best practice, on corporate workouts and comment on any proposals by the working group.
Assignment Start Date and Duration: The assignment is expected to start in September 2015 and have a duration of approximately 20 months.
Cost Estimate for the Assignment: EUR 80,000 Exclusive of VAT.
The consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the Bank’s special status as an international financial institution (IFI) and state this to the Bank in their response to Notification of Assignment. To the extent that a consultant incurs input VAT on goods and services purchased in connection with the provision of services (eg VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.
Funding Source: EBRD Shareholder Special Fund
Eligibility: There are no eligibility restrictions and consulting firms from any country may apply,however consultant selection and contracting will be subject to availability of funding.
Consultant Profile: Corporate services are required. The Consultant will be a firm, or consortium of firms, with previous experience in similarly focused assignments. The team is expected to include experts who will provide general and international best practice advice on corporate restructuring
The Consultant’s expert team is expected to include the following key experts:
a. International Corporate Restructuring Expert/s with substantial previous project experience in financial corporate restructuring (preferably with experience on the area of legal reforms);
b. Local Restructuring Expert/s with previous project experience in financial corporate restructuring (preferably with experience on the area of legal reforms).
Submission Requirements: Interested firms or groups of firms are hereby invited to submit expressions of interest. The information to be submitted should include the following:
1. Company/group of firms’ profile, organisation and staffing (maximum 2-4 pages).
2. Details of previous project experience or similar assignments particularly undertaken in the previous five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided (if different from duration) , main activities, objectives.
3. CVs of key experts who could carry out the Assignment detailing qualifications, experience in similar assignments, particularly assignments undertaken in the previous five years, including information on contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided, assignment budget, main activities, objectives.
4. Completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link:
http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc.
The complete expression of interest (including CVs, Consultant Declaration and Contact Sheet) should be submitted, in English electronically through e-Selection, to reach the Bank not later than the closing date. The expression of interest shall ideally be in one file (pdf) of no more than 4MB.
Bank Contact Person:
Angela Levitsky
Technical Co-operation
European Bank for Reconstruction and Development
Tel: + 44 20 7338 6363
E-mail: levitska@ebrd.com
Notes:
1. The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding.
2. The shortlist criteria are:
1) a firm/association of firms with proven experience and expertise in advising on best practice on corporate restructuring (30%)
2) a firm/association of firms with proven experience in Hungary and internationally (10%)
3) a firm/association of firms with proven experience with legal reforms (10%)
4) CVs of key experts (50%)
