Debt repayment and release of security

If you have external debt in place, buyers will typically look for this to be paid off, with any related security released, prior to completion. Engage with your lenders and their legal counsel early to understand the process, timings, and likely costs, including any break costs/early repayment penalties.

Under Slovak law, particular attention should be paid to the formal process for the release of security (such as pledges over shares, receivables, bank accounts, or assets), which may involve notarial deeds, consent of secured creditors, and deregistration from the Companies Registry, Central Depository, Notarial Central Register of Pledges or the Cadastral Register in the case of pledges over immovable property. Where a notarial deed on direct enforceability was used as part of the original security, its cancellation may also require coordination with a notary. These steps can take time and should be planned well in advance of signing or completion to avoid delays.