Kazakhstan’s BTA Bank has unveiled four restructuring options for its creditors, including a cash buyback with an 82.25% discount, limited to US$1bn. BTA is seeking to restructure its US$10.3bn debt following its default earlier this year.
The bank has also named the members of its creditors' steering committee, which includes ABN Amro, Commerzbank, US Ex-Im, Fortis Investment Management, ING Asia Private Bank, JP Morgan Chase Bank, Standard Chartered Bank and Wachovia Bank.
During meetings between BTA and the steering committee, held on September 3 and 4, BTA delivered an outline of its restructuring options, which are as follows:
• A cash buy back option for a maximum cash amount of US$1bn with a 82.25% discount.
• A medium-term roll over option with a 60% discount.
• A subordinated long-term par roll over option accounting for tier 2 capital.
• A debt to equity swap option with a 80% discount.
In addition, recovery notes will be issued to creditors to allow for their participation in BTA’s asset recovery strategy.
According to a statement by the bank. BTA and its advisors intend to engage in discussions and negotiations regarding the specific terms of a consensual restructuring arrangement with the members of the steering committee on an expedited basis in the first half of September.
The Financial Supervision Agency has set September 18 as the deadline by which creditors must agree or reject the offer.
BTA said restructuring would apply both to principal and accrued interest and would include trade finance liabilities.
BTA has also announced a further KZT400 billion (US$2.7bn) increase in loan loss provisions in addition to those recorded as at June 30, 2009.
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