Astana Finance asks U.S. court to enforce amended restructuring plan

By Caroline Salls

Pittsburgh, May 5 – JSC Astana Finance’s foreign representative asked the U.S. Bankruptcy Court for the Southern District of New York to amend its order recognizing the company’s restructuring proceeding in the Republic of Kazakhstan by enforcing an amended restructuring plan to allow Astana to complete its restructuring, according to a Tuesday court filing.

Since entry of the original recognition order, the representative said Astana Finance learned that it could not obtain some approvals required for its plan to take effect. As a result, the company entered into negotiations with its creditors to amend the plan.

According to the motion, the amendments were approved by creditors, resulting in an amended plan intended to take effect in the coming weeks.

“Without this court’s entry of an order enforcing the amended restructuring plan, that consummation likely cannot occur, as at least $300 million will be required to travel through the United States for distribution,” the motion said.

“The original recognition order enforced only the restructuring plan in existence at the time of the entry of that order.”

The representative said the current, amended restructuring plan provides for an additional $125 million in distributions through the United States, which could be at risk if a lone creditor decides to take action.

Astana Finance is a financial institution based in Astana, Kazakhstan. Its Chapter 15 case was filed on April 25, 2014 in the U.S. Bankruptcy Court for the Southern District of New York under case number 14-11217.

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