Kazakh BTA Bank to reduce financial indebtedness from $11 bln to $3.3 bln

Azerbaijan, Baku, Dec. 7 / Trend E. Kosolapova/

Kazakh BTA Bank will reduce financial indebtedness subject to restructuring from $11 billion to $3.3 billion, the bank reported on Friday.

The maturity of the debt will be extended to 3-12 years.

Restructuring plan relating to 1,611 billion tenge ($10.9 billion) of the claims arising from the designated financial indebtedness was approved at the claimants' meeting in Almaty on Dec.5, 2012. Claimants representing 93.8 percent of the claims voted for the plan.

This approval follows the approval of the restructuring plan by the Bank's shareholders, including the holders of its GDRs, by a majority of 99.4 percent on 3 December 2012.

The restructuring of the financial indebtedness will be achieved by cancellation or restructuring of all outstanding claims, in consideration of which claimants will receive cash, shares in the Bank (or GDRs) and newly issued bonds of the Bank depending on the nature of their claims.

Moreover the lenders under the Bank's RCTFF will renew the facility extending the maturity and improving the terms of availability.

Kazakh Sovereign Wealth Fund Samruk-Kazyna will convert $1.2 billion out of the $1.7 billion of SK Deposits into equity of the Bank and extend a $1,592 million loan (to be denominated in tenge) to the Bank, which will be subordinated to the new bonds and the RCTFF.

Following the restructuring, Samruk-Kazyna will own over 97 percent of the Bank's share capital, compared to the current 81.5 percent.



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