Kazakhstan's Temirbank gets extension of deadline for creditor approval from additional authority

By Angela McDaniels

Tacoma, Wash., Jan. 12 - JSC Temirbank announced that the Specialized Financial Court of Almaty approved the extension of the deadline by which it must receive creditor approval of its restructuring plan to March 31 from Dec. 30.

As previously reported, the extension has also been approved by the FMSA.

Plans for the proposed restructuring were announced in November. Bondholders were going to vote on the plan at meetings on Dec. 22, but the number of bondholders present was not enough to reach a quorum, prompting the bank to withdraw its restructuring plan at that time.

As previously reported, the meeting for holders of Temir Capital BV's $300 million of 9% senior notes due 2011 was dissolved, and the meeting for holders of Temir Capital's $500 million of 9½% senior notes due 2014 had been adjourned indefinitely.

Under the terms of the plan:

• The 9% notes were to be satisfied by a cash payment of 19.70% of par, comprised of 14.25% of par, 4.45% of par for interest accrued through Nov. 22 and a $10 early submission payment.

Originally, the bank planned to give the $10 payment only to holders who voted on the restructuring plan by the Dec. 15 early submission deadline. It later decided to make the payment to all holders, regardless of whether they vote, as long as the restructuring plan was successfully carried out;

• The 9½% notes were to be satisfied by a cash payment of 20.0264% of par, including 14.25% of par, 4.7764% of par for accrued interest through Nov. 22 and the $10 early submission payment;

• The domestic bonds issued by the bank were to continue at par but were to be amended to significantly extend the maturity date, to apply a reduced interest rate and to partially or fully subordinate the claims;

• Holders of secured domestic bonds were to receive new secured notes on 25% of the outstanding instruments, with the balance being converted into unsecured subordinated notes;

• Deposits placed by JSC National Welfare Fund Samruk-Kazyna and JSC BTA Bank were to be modified to extend their duration and, in the case of BTA Bank, to reduce the interest rate;

• 37.3% of Temirbank's liability to CoBank ACB under letters of credit issued under trade finance transactions were to be written off with the balance remaining outstanding on current terms; and

• Any default interest was to be written off.

Upon completion of the restructuring, National Welfare Fund Samruk-Kazyna planned to provide equity funding to Temirbank and become the bank's majority shareholder.

All retail and commercial deposits and the bank's other operating liabilities, including advisers' fees, will be excluded from the restructuring.

The bank added that individual depositors continue to be protected under the state system of mandatory guarantees of deposits up to 5 million Kazakh tenge.

Questions may be directed to the international department of the bank (ir@temirbank.kz or 7 727 259 0528 or 7 727 258 7829). The information agent is Thomson Reuters (disclosures_fisi@thomsonreuters.com or contact Ellis Farrell at 44 207 542 8775, Christina Mermiga at 44 207 542 5836 or Melina Bobbio at 44 207 542 9013).

Temirbank is a financial institution based in Almaty, Kazakhstan.

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