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ARTICLE · 20 JULY 2011

Side Letter Not Legally Binding

Charles Russell Speechlys LLP
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Barbudev had been the CEO and 40% shareholder in a Bulgarian cable television and internet company (X) acquired by ECMB which, along with the other defendants, was a Warburg Pincus company.

United KingdomCorporate/Commercial Law
Mark Alsop
Mark Alsop

Georgi Velichkov Barbudev v (1) Eurocom Cable Management Bulgaria EOOD (ECM) (2) Warburg Pincus International LLC (3) FN Cable Holdings BV (2011) EWHC 1560 (QBD)

Barbudev had been the CEO and 40% shareholder in a Bulgarian cable television and internet company (X) acquired by ECMB which, along with the other defendants, was a Warburg Pincus company.

The pre-sale negotiations for X included a number of discussions as to Barbudev's continuing involvement in X after sale of his 40% stake. The essence of the discussions was that Barbudev would be entitled to take a 10% stake in the Purchaser for €1.65 million. It became clear during negotiations of the share purchase agreement (SPA) that the terms of the subsequent investment could not be agreed before the SPA was signed, so a side letter was prepared. The principal terms of the side letter were:

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