BTA will discuss the non-payment of interest 12 января 2012, 13:41
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The board of directors of Kazakhstan BTA bank suggest discussing non-payment of interest on bonds amid the plans of new restructuring of parts of their debt at the extraordinary general meeting of the shareholders, the bank announced on Wednesday, Interfax-Kazakhstan reports.
This supplementing agenda of the extraordinary general meeting of the shareholders, scheduled for 26 January 2012, was initiated by BTA board of directors.
According to the press-release the agenda of the extraordinary general meeting of the shareholders was supplemented by the following issue: “On approval of non-payment by BTA Bank JSC of interest due on the Bank’s bonds and on imposition of a moratorium on certain payments of the Bank to those of its creditors, other than depositors, as may be determined by the Bank’s Management Board in its sole discretion”.
The board of directors is also suggesting to discuss approval of amendments and supplements into the Charter of BTA Bank JSC.
Earlier the agenda of the shareholders’ meeting included two issues: “On a possibility of restructuring of “BTA Bank” JSC, reaching of a compromise arrangement and entering into the agreements and signing other documents necessary for this”; and “On implementation of any measures or initiation of any procedures with the purpose to instate a general moratorium with respect to proceedings by the third parties.”
In case of no quorum, the second general meeting of shareholders will be held on January 27.
End of last year BTA Bank announced that there were plans to hold another restructuring of its debt and that the issue was to be looked at at the general meeting of the bank’s shareholders on the 26 of January 2012 in Almaty. It was then when the key shareholder Samruk-Kazyna state fund declared its support to the BTA bank's suggestion on the partial restructuring of the debt.
It is suggested that the planned restructuring will be undertaken towards the liabilities to creditors issued by BTA bank as part of of its previous restructuring that concluded in 2010.
BTA Bank defaulted in 2009 and completed the restructuring of its debt in September 2010. As a result of the restructuring the Bank’s debt decreased from 16.66 billion dollars to 4.4 billion dollars.
After completion of the restructuring of BTA Bank's debt, the bank is controlled by the state fund Samruk-Kazyna (81,48%). The creditors of the Bank received in total over 18% of notes after the restructuring was complete.
Based on 2010 results BTA Bank came 16th by assets among CIS banks and 3rd among 39 Kazakh commercial banks in Interfax-1000 CIS Banks ranking, compiled by Interfax Economic Analysis Center.