Reuters: Bankruptcy News: UPDATE 1-Kazakh BTA bank agrees $11.2 bln debt restructuring

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UPDATE 1-Kazakh BTA bank agrees $11.2 bln debt restructuring Oct 3rd 2012, 08:52 Wed Oct 3, 2012 4:52am EDT (Adds detail from statement, market reaction) ASTANA Oct 3 (Reuters) - Kazakh bank BTA has agreed a preliminary term sheet with creditors to restructure $11.2 billion of debt, the bank said on Wednesday, triggering a rally in its heavily-discounted bonds. Kazakh sovereign wealth fund Samruk-Kazyna, the bank's majority shareholder, agreed to convert its deposits into equity and issue a $1.592 billion interest-bearing subordinated loan. Creditors will exchange their interests for a package of new notes and cash, BTA said in a statement. The new notes will have a nominal amount of $750 million with a semi-annual coupon of 5.5 percent per year and maturity in 2022. Senior noteholders will also receive $957.8 million of cash and $88.8 million of new notes. Recovery unit holders will receive $660.2 million in cash and $61.2 million of new notes. "We hope to complete the restructuring by year-end 2012," BTA Chief Executive Yerik Balapanov said in a statement. All creditors had agreed to the non-binding term sheet, with the exception of Nomura International, BTA said. BTA's $2.1 billion 2018 bond jumped at least 5 cents on the news to more than 30 cents on the dollar. (Reporting by Maria Gordeeva; Additional reporting by Carolyn Cohn; Writing by Robin Paxton; Editing by Douglas Busvine) Link this Share this Digg this Email Reprints

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