Kazakh Bank BTA Wins Shareholder Vote For Debt Deal

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BTA, Kazakhstan's third-largest bank by assets, has won a vote by its shareholders, dominated by the state sovereign wealth fund, to restructure its $11.2 billion of debt, the second such agreement with creditors in as many years, Reuters reported. In its first restructuring in 2010 BTA had cut net debt by two thirds to $4.2 billion in a deal that bought sovereign wealth fund Samruk-Kazyna an 81.5-percent stake. BTA said on Wednesday that 99.4 percent of shareholders who took part in an extraordinary general meeting on Monday approved the latest deal that will include some cash for creditors and new loan notes with a ominal amount of $750 million. Investors have said the terms of the restructuring imply creditors will be asked to write off around 55 percent of their investment, depending on the paper held. Every member of a creditors' committee except Nomura agreed to the term sheet presented in October. Read more.