Kazakhstan Chamber of Commerce in the USA


BTA Bank restructuring

Posted on March 17, 2010 by KazCham

LONDON, March 12 – IA News-Kazakhstan. BTA Bank Restructuring could be completed in May-June 2010, the state plans to exit from the bank’s capital in 2012-2013, said in an interview IA News-Kazakhstan Head of Fund Samruk-Kazyna Kairat Kelimbetov.

“Restructuring was going well, I think  we will sign the conditions of it soon and will finish it, probably, in May-July” – said Kelimbetov to IA News-Kazakhstan.

“In principle, we expect that the state will exit the BTA and Alliance Bank in 2012-2013, because the prices for these banks will be more commercially attractive for us”, – considers Kelimbetov.

He recalled that the Alliance Bank restructuring has been completed.

“On 15 March Alliance Bank provided the AFS with the financial report. I think that somewhere in late May, the BTA also will report”, suggested the head of the Samruk-Kazyna.

“As for Sberbank, we agreed that as soon as we finish restructuring, we will cooperate with them, but the working relationship continues.  We share information”, – he said.

Earlier, chairman of BTA Bank, Anvar Saidenov, said that the creditors agreed to the proposed economic option, but there are legal issues that prevent completion of the restructuring process.

The process of the BTA Bank debt restructuring was started in 2009 as part of Kazakhstan bill on the restructuring. These legislative rules establish requirements that a restructuring of a company is carried out only with the consent of creditors whose total claims exceed two thirds of the debt subject to restructuring.

In October 2009, a specialized financial court of Almaty approved the request of  BTA Bank for debt restructuring as reasonable and as it met all requirements of the Kazakhstan legislation.

In December 2009, in London, BTA bank and a committee of its creditors signed an agreement on the basic commercial terms and the restructuring of financial indebtedness. At the same time, the Agency for Financial Supervision (AFS) of Kazakhstan ruled that BTA Bank has three months to restructure the debt, during which it will not initiate bankruptcy.

In the event that the bank will not agree with creditors before the appointed time, AFS may impose a bank conservation mode and start bankruptcy proceedings.

BTA bank faced problems because of the large external borrowing, which  the bank was unable to serve during a crisis. The international rating agency estimated the total debt of BTA bank in the $ 12 billion, of which approximately $ 4 billion were maturing in 2009.

The main shareholder of BTA Bank is Kazakhstan’s state fund – Samruk-Kazyna, which owns 78% of the shares. After the restructuring of debt,  the share will increase to 85%. The head of fund, Kairat Kelimbetov, said earlier that Samruk-Kazyna plans to keep the part of the bank’s shares for no more than three – five years.

He also noted that in the second quarter of this year, the fund will begin intensive negotiations with Sberbank to sell part or all of their shares to it. Experts believe that Sberbank is the most likely buyer of BTA shares, paying attention to the high probability that Mr. Kelimbetov will become the member of the supervisory board of Sberbank in summer of 2009.

SOURCE: translated from http://www.zakon.kz/165824-restrukturizacija-bta-banka-mozhet.html

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