January 26, 2012 / 12:05 PM / 6 years ago

TIMELINE-Debt restructuring at Kazakh bank BTA

Jan 26 (Reuters) - Shareholders in Kazakh bank BTA , majority-owned by the sovereign wealth fund, voted against a debt restructuring plan at a meeting on Thursday, a week after the bank went into official default for the second time.

Following is a timeline of the key events at BTA since the bank, Kazakhstan’s third largest by assets, became the biggest of four Kazakh banks to default in 2009 in the wake of the 2008/09 global financial crisis.


Aug 2010- BTA completes a multibillion dollar debt restructuring programme, which leads to sovereign wealth fund Samruk-Kazyna becoming an 81.5 percent shareholder in the bank. Samruk-Kazyna pledges, in time, to sell its stake to the private sector.

May 12 2011 - BTA CEO says the bank has returned to profit, but analysts and investors say results show a slower-than-expected pace of recovery for BTA’s banking operations.

May 16 - A sell-off of BTA bonds forces the yield on the $500 million 2025 bond to almost 15 percent, a rise of over 250 basis points in around two weeks.

May 18 - BTA asks Britain to arrest its former head Mukhtar Ablyazov from whom the bank seeks billions of dollars in compensation for alleged misappropriation.

June 21 - BTA says it has enough money to meet an upcoming bond coupon payment, addressing fears among investors it might default on its debt. The bank also says it is working with Samruk-Kazyna to formulate a medium-term business plan.

July 1 - BTA meets a more than $150 million bond coupon payment, making good on its pledges to investors to respect its obligations.

Sept 30 - BTA repays a $175 million loan instalment of a trade finance loan agreed as part of its debt restructuring process.

Oct 20 - BTA’s sovereign wealth fund owner Samruk-Kazyna says it intends to continue supporting the bank. Samruk-Kazyna’s managing director Peter Howes blames “vested interests” for spreading negative rumours that triggered further selling of BTA bonds.

Oct 31 - The International Monetary Fund urges Kazakhstan to urgently address the issue of non-performing loans, saying loans overdue by 90 days or more make up 28.7 percent of the Kazakh banking sector’s credit portfolio.

Nov 1 - Kazakh central bank data shows BTA posted a loss of over $400 million in September driven by higher bad loan provisions.

Nov 11 - The governor of Kazakhstan’s central bank says the global financial climate could make it difficult for sovereign wealth fund Samruk-Kazyna to sell its stakes in BTA within the timeframe set under a debt restructuring programme.

Nov 30 - A Kazakh government source says Samruk-Kazyna is preparing to inject more capital into BTA as part of a business plan that could involve the bank buying back its bonds next year.

Dec 6 - Kazakhstan’s financial regulator says it expects BTA to submit two rescue proposals by the year-end, which will form the blueprint for a plan to stave off bankruptcy.

Dec 22 - BTA says it will propose a further debt restructuring at a shareholder meeting in late January 2012, a move seen requiring creditors to write off at least half their investment.

Dec 27 - BTA’s chairman says it may not have enough cash to make its next interest payment and believes a further debt restructuring is in the best interests of all creditors and shareholders.

Jan 3 2012 - BTA bonds fall to record lows as analysts say the bank has so far failed to make coupon payments, risking a default.

Jan 4 - BTA’s 2018 dollar bond hovers at record lows around 18 cents on the dollar after three sources tell Reuters the bank did not meet $160 million in coupon payments due on Jan 3.

Jan 11 - The second of two creditor representatives on the board of BTA leaves the bank as it gears up for emergency talks with creditors enraged about a looming debt restructuring and the non-payment of a coupon due the previous week.

The bank’s chairman Anvar Saidenov tells Reuters BTA cannot survive without a second round of debt restructuring, adding that the bank’s board has proposed a moratorium on debt repayments, which would be voted on only at the bank’s Jan. 26 shareholder meeting.

Jan 12 - BTA says it will soon sell its 34 percent ($166 million) stake in Turkey’s Sekerbank to its main shareholder, Samruk-Kazyna, in a presentation to GDR holders dated Jan. 11 and published to its website on Jan 12.

Holders of BTA’s Eurobonds say they are considering forcing early repayment on BTA’s senior debt if the bank goes into default the next week, potentially allowing other creditors to demand repayment of up to $8 billion.

Jan 17 - BTA goes officially into default after missing the 10-day grace period to pay $160 million in bond coupons. An ad hoc group of creditors say they will set up a formal committee.

Jan 20 - BTA’s former head Mukhtar Ablyazov says in a letter to Kazakh President Nursultan Nazarbayev he believes the bank’s second default was the result of its nationalisation and states he is ready to return to the country and fix the bank.

Jan 26 - Shareholders in BTA vote against a debt restructuring plan at a meeting. Despite the vote, BTA says its will try to persuade creditors to accept the restructuring and says it hopes to form a steering committee in the coming days to negotiate the terms. (Reporting by Alessandra Prentice)

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