business and economy

FSA approves Alliance Bank restructuring

By SRI ⋅ July 29, 2009 ⋅  Email This Post ⋅  Print This Post ⋅ Post a comment

(SRI) - As expected, the Financial Supervision Agency (FSA) has approved the debt restructuring agreement between Alliance Bank and its creditors, the financial regulator said in a press release on Tuesday.

In early July, the bank had reached an agreement with creditors to restructure its $4-billion debt, offering five options ranging from immediate redemption at a deep discount to conversion to equity. The restructuring should reduce the bank’s debt to about $1 billion from the current $4 billion.

Following the completion of the restructuring, currently projected for November of this year, the state holding and investment company Samruk-Kazyna plans to inject KZT129 billion ($856 million) into the bank in exchange for a controlling stake.

Tags: Alliance Bank, debt, FSA

Related articles

• Kazakhstan will not provide state guarantees for bank debt restructuring
• U.S. court grants Alliance Bank bankruptcy protection