Kazakh FSA says has BTA debt restructuring plan
* FSA said BTA has subitted debt plan, appendices to come
* Analyst says no debt agreement reached yet
* Regulator expects plan by 1800 GMT Friday
* Restructuring expected to cover about $10 bln in debt
By Olzhas Auyezov
ALMATY, Sept 18 (Reuters) – Kazakhstan’s Financial Supervision Agency (FSA) said on Friday it had received state-run bank BTA’s plan to restructure its $10 billion debt and expected complete details by the end of Friday.
The FSA had earlier ordered the bank to submit a plan, agreed with creditors, by Sept. 18.
“They have submitted a plan but we do not have some appendices to it,” FSA head Yelena Bakhmutova told Reuters, adding that the bank still had time until midnight (1800 GMT) to submit information.
“They have promised to submit the necessary information and will probably do it today,” she said.
Last week, BTA asked creditors to cut its debt by $8 billion to avoid bankruptcy after large losses [ID:nL7179068].
However, a Western analyst covering BTA said the deal had not been reached by Friday morning.
“The creditors’ committee held a meeting yesterday and there was absolutely no agreement,” said Luis Costa, an analyst at Commerzbank, which is a member of BTA creditor’s steering committee.
Costa, who is not a member of the committee and was not personally involved in the talks, said the final deal could be months away.
Proposed debt restructuring options include a cash buyback with a 82.25 percent discount, limited to $1 billion.
Two other options are a seven year rollover at a discount of 60 percent with a five year grace period and reduced interest rates, and a 15 year subordinated rollover at par with a 10 year grace period and reduced interest rates.
A fourth option is equity conversion at a discount of 80 percent.
The state took over the bank in February and in April it went into default. The government has accused BTA’s former managers of fraud that led to the bank’s large losses, a charge they have denied. (Writing by Olzhas Auyezov; editing by Karen Foster)