Feb. 29 (Bloomberg) -- BTA Bank will hold a meeting with investors to select two directors representing the interests of creditors on the lender’s board.
Senior bondholders will appoint one of the directors, with another elected by holders of so-called original-issue discount-debt instruments, the Almaty-based lender said in a statement e-mailed today. The creditors will choose among five candidates, the bank said.
Two creditor directors resigned as BTA sought its second debt restructuring in as many years after failing to make an interest payment on its July 2018 dollar bonds in January. Kazakhstan’s sovereign wealth fund Samruk-Kazyna took over BTA in February 2009, two months before the nation’s largest lender at the time defaulted on $12 billion of debt.
A group of unidentified creditors said in a Dec. 30 letter to BTA, the Kazakh central bank and Samruk-Kazyna that it’s “critical that the board of directors includes creditor directors.”
To contact the reporter on this story: Nariman Gizitdinov in Almaty at firstname.lastname@example.org
To contact the editor responsible for this story: Stephen Voss at email@example.com