Kazakh BTA says signs new debt restructuring deal

March 17. Reuters

Kazakh BTA says signs new debt restructuring dealKazakh bank BTA, which collapsed last year, has signed a new agreement with creditors on a $12 billion debt restructuring it needs to open talks on a sale to Russia’s Sberbank.

“On 17 March 2010, the bank signed a revised principal commercial terms sheet (the PCTS) with the Steering Committee setting out the revised principal commercial terms of the restructuring,” it said in a statement posted on its website.

BTA, which must hold a creditors’ meeting by March 23 to approve the restructuring, did not provide any details of the new agreement, saying its text would be available on its website bta.kz.

BTA, Kazakhstan’s second-largest bank, went into default last year shortly after the government took it over and accused the bank’s former managers of fraud, a charge they deny.

Last December, BTA signed its first agreement with creditors, saying it needed to be finalised. Kazakh officials say a successful restructuring would pave the way for takeover talks with Sberbank.