Kazakhstan's Alliance Bank seeks noteholder approval for restructuring

By Jennifer Chiou

New York, Nov. 6 - JSC Alliance Bank announced that it will call together holders of the following series of its notes for six meetings on Nov. 27 seeking the authorization of its restructuring plan;

• $350 million of its 9¼% notes due 2013;

• $250 million of its 8¾% notes due 2011;

• $200 million of its 9% notes due 2010;

• £250 million of its 9¾% notes due 2011;

• $150 million of its 9 3/8% perpetual non-cumulative capital securities; and

• €750 million of its 7 7/8% notes due 2012.

The meetings will take place beginning at 5 a.m. ET in London. If a quorum is not reached for any of the notes series within 15 minutes, the meeting for those noteholders will be adjourned until Dec. 11.

A quorum will be reached when holders of at least 75% of the notes are present for the first meeting. In the case of an adjourned meeting, a quorum will be reached when holders of at least 25% of the notes are present.

The bank is also looking for at least 75% of noteholders to instruct the trustee to vote in favor of an extraordinary resolution. Holders who consent will also give the bank, at its request to the trustee, permission to accelerate the notes.

In the event the restructuring plan is approved, holders who give authorization will also assent to the termination of the guarantee under the note trust deeds while discharging the trustee from any liability under the notes.

Those who vote in favor of the extraordinary resolution are also voting in favor of the restructuring plan.

On Sept. 22, the bank said that the Specialised Financial Court of Almaty approved its application for restructuring, effective Sept. 18.

The bank had said the court's approval starts the restructuring process under the new bank restructuring legislation in Kazakhstan.

BNY Coporate Trustee Services Ltd. (formerly J.P. Morgan Corporate Trustee Services Ltd.) is the trustee for all notes.

The tabulation agent and paying agent is the Bank of New York Mellon (eventsadmin@bnymellon.com).

Alliance Bank is focused on small and medium enterprises and the retail segment. It is based in Almaty, Kazakhstan.

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