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BTA Bank forming steering committee to negotiate debt restructuring
By Caroline Salls
Pittsburgh, July 17 - BTA Bank JSC said a creditors' steering committee is being established to negotiate a debt restructuring plan with bondholders, export credit agencies, lenders and trade finance creditors, according to a company news release.
BTA said it has been affected by the devaluation of the tenge in February, the continued recession in the Kazakhstan real estate and construction markets, questions regarding the value of the bank's loan portfolio and ongoing investigations into some of the bank's operations, all occurring since Dec. 31, 2008.
As a result, BTA has hired KPMG LLP to conduct financial due diligence on the bank, primarily focused on the bank's loan portfolio and other financial investments, as well as off-balance sheet items.
KPMG is scheduled to deliver a presentation on the bank's financial situation to the steering committee on July 23 based on preliminary management estimates.
In connection with that presentation, BTA said it will provide details of a timeline for the restructuring process and a menu of debt restructuring options.
Currently, the company said it expects the debt restructuring plan to include a cash buyback option for BTA Bank eligible debt, a capped long-term debt rollover option and a debt-for-equity conversion option.
According to the release, the proposed members of the steering committee are Commerzbank AG, the D.E. Shaw group, DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, Euler Hermes, Fortis Investments, Gramercy Advisors LLC, ING Asia Private Bank Ltd., Royal Bank of Scotland, US Exim-Bank and Wachovia Bank NA.
BTA is a Kazakhstan bank.
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