International Bank of Azerbaijan completes its restructuring process
Baku, Azerbaijan, Sept.1
OJSC International Bank of Azerbaijan (the “Bank” or “IBA”) is pleased to announce that the initial distribution of entitlements under its Restructuring Plan occurred earlier on Sept.1.
Accordingly, September 1, 2017 constitutes the restructuring date under the terms of the restructuring plan.
The restructuring plan was previously approved by an affirmative vote of holders of 93.9 percent of affected claims at the Claimant’s Meeting held on July 18, 2017, by the Financial Market Supervisory Authority of Azerbaijan on July 25, 2017 and by the Nasimi District Court in Baku at the hearing of the bank’s application that took place on August 17, 2017.
The occurrence of the restructuring date constitutes successful conclusion of the restructuring, subject only to termination of the proceedings in the Nasimi District Court that will take place in due course. Entitlements that were not distributed on the restructuring date were deposited into an account with the distribution agent pending satisfaction by the relevant claimants of conditions for distribution of their entitlements in accordance with the terms of the restructuring plan.
“The successful closing of the restructuring process earlier today is a key step in the bank’s plan to ensure its long-term viability. The bank is now in a position to work with the Ministry of Finance on completion of the remaining part of the transfer of certain impaired assets to Aqrarkredit. The combination of these two transactions will restore the bank’s capital position, provide the bank with the necessary financial strength to implement its business plan aimed at restoration of long-term profitability and also facilitate the government of Azerbaijan’s objective of privatizing the bank by the end of 2018,” said Khalid Ahadov, Chairman of IBA.
Lazard acted as financial adviser to the bank and White & Case LLP acted as its legal adviser in connection with the restructuring. D.F. King acted as information and tabulation agent in connection with the restructuring.