Kazakhstan's Astana Finance puts moratorium on bond interest payments

By Caroline Salls

Pittsburgh, Sept. 16 - JSC Astana Finance has placed a moratorium on interest payments on all of its domestic bonds until the company completes its restructuring proposal, according to a company news release.

The company said the moratorium resulted from the continued deterioration of its liquidity position.

In addition, Astana said it has hired Ernst & Young Advisory LLP as its restructuring adviser to help the company implement its debt restructuring, and a formal creditors committee has been established.

Ernst & Young replaces J.P. Morgan Securities Ltd. as Astana's restructuring adviser.

Nomura International plc will chair the creditors committee.

According to the release, the company has now substantially completed a review of its loan books and, as a result, expects provisions for the year against bad and doubtful debts to be in the region of KZT 85 billion to KZT 90 billion.

FMSA has informed Astana that it has until Nov. 15 to arrange a recapitalization sufficient to restore capital adequacy.

Also, Astana said Kazakhstan Stock Exchange is considering the delisting of the company's securities because of information disclosure violations.

Astana Finance is a financial institution based in Astana, Kazakhstan.

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