Kazakhstan’s Alliance Bank schedules noteholder vote on restructuring

By Caroline Salls

Pittsburgh, Oct. 9 – JSC Alliance Bank noteholders will meet on Oct. 31 to vote on the bank’s restructuring plan, according to notices to the noteholders released Thursday.

Participants in the meeting will include holders of the bank’s $978,059 of 5.8% notes due 2020, its $615.14 million of 10½% notes due 2017 and its $219.34 million of its 4.7% notes due 2020, which will bear interest at Libor plus 850 basis points from 2017.

As previously reported, the bank agreed on Aug. 1 with all the members of a steering committee of its creditors to a non-binding term sheet for the restructuring of $1.2 billion of the bank’s financial debt.

Alliance Bank said it will receive considerable debt relief from its creditors holding senior discount notes, senior par notes, recovery notes and subordinated notes, who, subject to the approval of the restructuring and the consolidation, will exchange their existing notes for a package of new notes issued by the bank, equity in the combined bank and cash.

The new notes will have a principal amount of $236.6 million, mature 10 years after closing and carry an 11¾% coupon.

The restructuring calls for the consolidation of JSC Temirbank and JSC ForteBank with Alliance Bank.

Alliance Bank is focused on small and medium enterprises and the retail segment. It is based in Almaty, Kazakhstan.

© 2015 Prospect News.
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