March 13, 2019 / 2:01 PM / 5 months ago

Cukurova Holding may seek restructure of $1.6 bln loan from Ziraat Bank-sources

ISTANBUL, March 13 (Reuters) - Turkish firm Cukurova Holding is considering whether to seek restructuring of a $1.6 billion loan from Ziraat Bank which it took to buy back Turkcell shares from Luxembourg-based Letterone (L1), according to two sources.

Cukurova’s loan is the second biggest telecommunication loan in Turkey’s banking sector history after $4.75 billion loan in 2013 to acquire a 55 percent stake in Turk Telekom which was later transferred to a special purpose vehicle (SPV).

Cukurova Holding took out the 10-year loan in 2014 with a three-year grace period. It has paid for the interest on the loan using dividends from the Turkcell stake but has not paid back instalments on the principal loan since July 2017.

The loan has an annual principal payment of $200 million.

Neither Cukurova Holding and nor Ziraat Bank commented on this report.

The sources said Cukurova may not be able to pay the third instalment due in July.

“Neither the bank nor the company would want this to turn into a non-performing loan. Both Cukurova and Ziraat Bank will think about restructuring,” one source said.

The other source said Ziraat Bank would “evaluate restructuring a loan for which the principal has not been paid for two years.”

Writing by Ezgi Erkoyun Editing by Dominic Evans

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