BTA Bank reached a compromise with (some of) its bondholders to issue cash and new securities equal to approximately half of the $12.2 billion owed as part of its restructuring package. The package was equal to $7.8 billion, or 63% of the outstanding principal and interest. Creditors also received recovery notes, allowing them to profit from the sale of assets, and 15% of BTA’s equity. BTA set out
to pay about $1 billion in cash to the creditors and issue $2.3 billion of senior debt and $797 million of subordinated debt under the restructuring agreement.[6]
In June 2012, BTA declared talks began on its proposed debt overhaul with the creditors’ steering committee after the state-owned lender failed to make an interest payment on its July 2018 dollar bonds in January. Subsequently, BTA filed for creditor protection under Chapter 15 of the U.S. bankruptcy code for the second time in about two and a half years.[7]
Details of 2010 (1st) restructuring offer . . .
· 10.72-11.07% of the principal and accrued interest to be paid in cash; the maximum payout is USD 1.0bn
· 26.96-27.43% of the principal and accrued interest to be converted into new senior bonds with eight years to maturity. Settlement is distributed equally over the last eight 6-month periods. The interest rate is 10.75% p.a. for the first 2½ years and then 12.5% p.a. After four years and any time thereafter, the bonds can be redeemed at 100.
· 6.11-6.22 % of the principal and accrued interest to be converted into new junior bonds (Tier-2 capital) with fifteen years to maturity. Settlement is distributed equally over the last five years. Interest throughout the period 7.2% p.a.
· 12.55% of the share capital; customers who are not residents of Kazakhstan will be allocated
Global Depository Receipts (certificates representing the number of shares held).
· 89.61% of the Recovery Units issued will mature after ten years. The value will be assessed at maturity. It is possible to extend the maturity to twelve years. The value of the Recovery Units will reflect 50% of recovered depreciation and amortisation. The remaining 50% is to go to BTA Bank. Details of 2013 (2nd) restructuring offer of the twice defaulted lender are USD 425.40 in cash and 3.44 of new notes for every USD 1,000 senior notes. USD 129.77 in cash and USD 11.98 of new notes for every 1,000 Recovery notes. 24.666 GDR's for every USD 1,000 subordinated notes
