BTA creditors to consent to restructuring deal by March - Marchenko

business and economy

BTA creditors to consent to restructuring deal by March - Marchenko

By SRI ⋅ December 11, 2009 ⋅

(SRI) - BTA Bank, which reached a preliminary restructuring agreements this week, expects two thirds of creditors to give their consent to restructure the debt by March, according to central bank chairman Grigoriy Marchenko.

Marchenko, quoted by the KazTAG news agency, said the agreement signed on November 7 by BTA and its Creditors’ Committee, was an important step to finalize the debt restructuring. The bank is expected to finalize the existing agreement by January. Subsequently, it will need to be approved by all creditors.

BTA said on Tuesday it had reached a deal to restructure its $11.6-billion debt. The package is reportedly worth $5.57 billion, or 48 percent of outstanding principal and interest. BTA plans to pay about $1 billion in cash to the creditors and issue $2.3 billion of new senior debt and about $797 million of subordinated debt, according to the agreement.