BTA has agreed a memorandum of understanding with its Creditors’ Steering Committee to restructure its US$13bn debt.
The bank needs to restructure its debt to meet regulatory capital requirements. It spent four days last week in London meeting with the steering committee, comprising, among others, ABN Amro, Commerzbank, JP Morgan and Standard Chartered. It is now preparing to present the options to its creditors.
BTA has previously given details of four possible options for investors as part of the restructuring. They can accept a 82.5% haircut for a cash buyback; take a 60% discount in return for a seven-year rollover option with a reduced interest rate; take a 15-year subordinated rollover, with a 10-year grace period; or accept a conversion into BTA equity at a discount of 80%.
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