JSC Astana-Finance Managing Director Daniyar NURSKENOV:
THE FUTURE OF THE COMPANY WILL DEPEND ON THE CREDITORS' DECISIONS AND MARKET SITUATION
JSC Astana-Finance launched talks about restructuring in 2009. The restructuring process is not over yet and the talks are still ongoing. Daniyar NURSKENOV, the managing director of JSC Astana-Finance, has told Interfax-Kazakhstan about the progress of the talks in an interview.
- Mr Nurskenov, in March this year your company published an announcement on its website saying that Astana-Finance received approval regarding restructuring terms and conditions from one of the foreign creditors. To the best of our knowledge, the previous proposals for restructuring were rejected. Will you please provide some details concerning the proposal that was approved by your German partner?
- In mid-2011 we developed a restructuring plan that offered all international creditors a package of the following instruments on a proportional basis: a lump sum payment of $110 million; new one-year zero-coupon dollar notes worth $75 million; new zero-coupon notes maturing in 2016 (together with the previous notes they are to return the creditors 20% of the net present value of debts); 60% of the company's voting shares; special notes worth $50 million that will enable payments to the creditors from excess earnings that company may generate in the future. These instruments were included in the agreement which we signed with the international steering committee on September 15, 2011. The terms and conditions of this restructuring plan have not changed since then. Speaking of the March agreements, after signing the agreement in 2011 we conducted talks with the export credit agencies, as a result of which we signed agreements with them on March 15 this year.
- What is the current status of restructuring? Have you resolved disagreements with the domestic shareholders? What issues are still pending?
- We are getting ready for creditors' vote on the restructuring plan and preparing an information memorandum that will be sent to all creditors before voting.
The talks with the domestic creditors are still underway. To successfully finish the restructuring, we need to obtain exemption from taxes on revenue that was earned from partial writing-off of the debts. This type of exemption was earlier granted to three Kazakh banks that were restructuring their debts.
- How do you think this situation will resolve?
- We have been talking to the creditors and developing our restructuring plan since May 2009. However, the restructuring process was officially announced after the company's board of directors made a decision to restructure the debts in June last year. We believe that debt restructuring would be the best solution for everybody - the company, the creditors and the government. We hope this process will be a success. Our restructuring efforts have made considerable progress. Furthermore, JSC Astana-Finance is carrying out its restructuring program without any financial support from the government.
- What will the company do after restructuring? How do you think the situation will develop?
- After restructuring the controlling stake in the company, which is 60% in accordance with the concluded agreements, will go to the creditors and, thus, the future of the company will mainly be determined by their decisions and the market situation. Successful restructuring will improve the company's performance and help balance the size of its liabilities against the size and quality of its assets. Today our priority is to ensure best efficiency of the restructuring effort, taking into consideration the interests of both domestic and foreign investors.
- What is the current status of Bank Astana-Finance?
- JSC Astana-Finance is the only shareholder of the bank, which demonstrates a moderate growth and continues providing banking services, such as attracting corporate deposits, keeping client's accounts, providing loans and guarantees, conducting operations with securities, foreign currencies and cash.
- As far as we know, the company was not allowed to own more than 10% of the bank's capital. However, it has not been sold yet. What will happen to the bank in this case?
- Following the regulator's instructions, we are trying to sell the bank to a potential investor. To date we have reached some preliminary agreements which need to be finalized. So, we are determined to sell this asset.
- Will you comment on the financial performance of Astana-Finance in 2011?
- 2011 financial statement is still being audited. That is why I cannot provide any details now. According to preliminary financial statements, the company expects a loss of 13 billion tenge and assets at 150 billion tenge in value. JSC Astana-Finance incurs losses as it has suspended some of its transactions involving risks.
Currently, the company is focused on getting back the earlier placed funds and accumulating liquidity to be able to make payments to the creditors in accordance with its restructuring program. The company had over $100 million in its accounts at the end of 2011.
-Thanks for the interview!
May, 2012
й 2012 Interfax-Kazakhstan news agency
Copying and use of these materials without reference to the source is prohibited
May, 2012
© 2024 Interfax-Kazakhstan news agency
Copying and use of these materials without reference to the source is prohibited
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