Kazakhstans BTA Bank has completed the regions
biggest ever debt restructure thanks to a revolving committed
trade finance facility (RCTFF) and different creditor classes
sitting on an enlarged steering committee.
Through these innovative techniques, what was once the
countrys largest bank cut its debt by $12.4 billion with
minimal government assistance (a rarity for the region) and
through a structure that incorporates the importance of trade
finance to the fragile, oil export-driven economy.
The restructuring plan, which received court approval on
August 31, gives creditors the choice to opt into one of three
senior and two junior packages. Under these, $16.7 billion of
debt was cancelled and replaced with $945 million in cash
distributions, $8.7 billion of debt securities, equity
totalling 44.2 billion common shares, and crucially, the $698
million RCTFF that comprised the third senior package.