BTA Bank, Kazakhstan’s third-largest by assets, said an Almaty court prolonged the deadline for its restructuring by three months until Dec. 20 as talks continue on its second debt overhaul in as many years.
“This deadline has been extended due to ongoing negotiations between the bank and its creditors,” the Almaty-based lender said in a statement e-mailed today. BTA was seeking an agreement on its restructuring by September, according to a March 22 presentation published on its website.
The restructuring proceedings that started in the Specialized Financial Court in Almaty have been recognized in the U.S. as a “foreign main proceeding” by order of the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15 of the U.S. bankruptcy code on Aug. 16, according to the statement.
State-run BTA widened its net loss for the year to 1.37 trillion tenge ($9.2 billion) as of July 1 from a 711 billion-tenge loss in April, according to the central bank’s financial oversight committee. The lender’s liabilities of 2.66 trillion tenge exceeded assets by 1.21 trillion tenge in June, the regulator said.