New York court rejects IBA creditors’ appeal
Baku, Azerbaijan, June 29
By Anvar Mammadov – Trend:
Potential legal risks to voluntary restructuring of foreign liabilities of the International Bank of Azerbaijan (IBA) are left behind, Chairman of the IBA Management Board Khalid Ahadov told Trend commenting on the New York court’s decision on the IBA creditors’ appeal.
“The appeal of a number of creditors [to the New York court] regarding the restructuring process had not been accepted. The court once again ruled that the bank's assets must remain untouched during the restructuring period, which is proceeding as planned,” Ahadov noted.
Earlier, a number of creditors who did not agree with the restructuring of the IBA’s foreign liabilities, appealed to the New York court, stating their non-recognition of the restructuring. The court considered the appeal and ruled in favor of IBA. Thus, the bank's assets will remain untouched in the process of restructuring.
Voting on the plan of voluntary restructuring of the IBA’s foreign liabilities started on June 19 and will end July 18. The IBA had previously commenced a process of voluntary debt restructuring as part of its rehabilitation. The bank’s total debt to foreign creditors is $3.3 billion.
The International Bank of Azerbaijan has been operating since 1992 and is one of the country’s two state-owned banks.