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. The support resulted in delivery of a report on issues and recommendations regarding NPL resolution (the "Report"). The Hungarian authorities decided to establish a working group ("WG") that will address the issues identified in the Report and prepare a draft of a bankruptcy reform.
The EBRD has been asked to support the activities of the Hungarian authorities in preparation of bankruptcy law reform and now seeks to select and engage a legal adviser (the "Consultant") to assist with international and local legal advice and assistance to the WG responsible for drafting the bankrupcy law for Hungary to be implemented in 2016 (the "assignment").
The Consultant will be required to carry out the following tasks:
1. Report on Pre-Insolvency Procedures
This task will involve the preparation of a detailed report for the WG focusing on pre-insolvency procedures and related legal developments in a number of European jurisdictions, with special regard to Germany, Romania and Spain (Report on Pre-Insolvency Procedures). The Report shall, inter alia:
- review and analyse the different pre-insolvency procedures in Europe, identifying the strengths and weaknesses of each of these procedures and insofar as possible their overall impact;
- advise on the form and content of pre-insolvency procedure which would best fit the Hungarian context;
- address as part of its review and analysis any relevant points highlighted in the European Commission’s recommendation on a new approach to business failure and insolvency; and
- consider how the relevant pre-insolvency procedure would be implemented within the Hungarian legal framework for corporate restructuring and insolvency as part of the reform of the bankruptcy law.
2. Comment on the draft bankruptcy law
The Consultant shall comment on the main iterations of the draft bankruptcy law prepared by the WG from both an international and national best practice perspective, providing such drafting support and/or advice as required, taking into account the recommendations contained in the Report regarding reform of the existing bankruptcy law.
3. Participation at meetings
The Consultant will be required participate in the principal meetings of the WG in Budapest and contribute to the discussions of the WG.
4. Support the WG
The Consultant shall provide general international and national legal advice and best practice to the WG in support of its task of drafting the new bankruptcy reform.
Assignment Start Date and Duration: Start date: The assignment is expected to start in September 2015 and have a duration of approximately 20 months.
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 legal experts with substantial previous project experience in the insolvency law (preferably with experience in the area of legal reform)
b. Local insolvency law expert/s with previous project experience in insolvency law (preferably with experience in the area of legal reform)
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:
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:
European Bank for Reconstruction and Development
Tel: + 44 20 7338 6363
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 in insolvency and workout (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%)