Kazakhstan’s Buzgul Aurum misses coupon, defaults on 19% bonds due 2021

By Marisa Wong

Morgantown, W.Va., Oct. 23 – Buzgul Aurum announced a temporary default on its 19% bonds due 2021, which are listed on the Kazakhstan Stock Exchange.

The deadline for the first coupon payment on the bonds has expired, according to a stock exchange notice.

The company notified the stock exchange that it will be unable to meet its obligations under the bonds because of ongoing litigation.

The litigation, between Buzgul Aurum and AsiaCreditBank involving a pension fund, is over recovery of money written off from Buzgul Aurum.

The issuer said it will make further announcements should the claim be successful and the money recovered and that it intends to meet its obligations under the bonds.

The Almaty, Kazakhstan, mining company issued KZT 15 billion of the five-year bonds on Oct. 6, 2016.

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