Astana Finance signs debt restructuring memorandum with creditors’ committee

business and economy

Astana Finance signs debt restructuring memorandum with creditors’ committee

By SRI ⋅ October 20, 2009 ⋅

(SRI) - Astana Finance, one of three Kazakh lenders which had defaulted on its debt earlier this year, signed a memorandum of understanding (MoU) with its creditors’ committee on a planned $1.7 billion debt restructuring, the lender said in a press release published on its website.

For international creditors, the MoU foresees issuing a new seven-year Eurobond with a minimum size of $350 million. In addition, senior creditors would also receive loan recovery notes and up to 59 percent of voting shares in Astana Finance.

For senior domestic creditors, meanwhile, the MoU proposes to extend the maturity of all outstanding debt issues to 20 years with straight line amortization following the repayment of the new Eurobond. Domestic subordinated creditors will see their debt converted into shares which will represent approximately 16 percent of the company post-restructuring.

The nonbinding document did not detail any discounts at which the debt would be exchanged.

Astana Finance’s creditors’ committee comprises of Nomura International Plc, Banco Finantia SA, Franklin Templeton Investment Management Limited, Landesbank Berlin AG, Merrill Lynch International and Portland Worldwide Investments Ltd.