“Following the Restructuring, Samruk-Kazyna will own over 97% of the BTA Bank’s share capital compared with approximately 81.48% prior to the completion of the Restructuring,” BTA Bank said in statement. After the Restructuring, the Bank’s equity capital will be restored to give it a Tier 1 capital ratio above 10% under Basel II guidelines.

BTA Bank noted that its Restructuring Plan to the total of 1.611 trln ($10.9 bln) was approved at the Claimants’ Meeting in Almaty on December 5, 2012 by the majority vote. This approval follows the approval of the Restructuring Plan by the Bank’s Shareholders, including the holders of its GDRs, by a majority of 99.4% (including the approval of 89.5% of the GDRs that voted) on 3 December 2012.

“As a result of the Restructuring, the financial indebtedness of the Bank subject to the Restructuring will be reduced from approximately $11 bln to approximately $3.3 bln (including the remaining SK Deposits) and the maturity of such debt shall be extended to between three and 12 years. This will be achieved by the cancellation or restructuring of all outstanding Claims, in consideration of which Claimants will receive cash, shares in the Bank (or GDRs) and newly issued bonds of the Bank depending on the nature of their Claims. In addition, the lenders under the Bank’s RCTFF will novate the facility extending the maturity and improving the terms of availability,” said the bank in a press release.

Claimants now have until 10:00 AM (London time) on 14 December 2012 to submit Settlement Instructions through the Clearing Systems in order to receive any Entitlements under the Restructuring on the date of initial distribution, currently expected to be 21 December 2012, and to be able to take part in the exchange mechanism, if applicable.

Yerik Balapanov

“We are happy that our extensive work over the last few months has led to successful outcomes at the Extraordinary General Shareholders’ Meeting and the Claimants’ Meeting. The Restructuring Plan is the result of the joint efforts of both the Bank’s management team and the Steering Committee, and the overwhelming majority of our stakeholders have voted in favour of it," said the Chairman of the Bank’s Management Board, Mr. Yerik Balapanov.

The Bank’s financial adviser during the Restructuring was Lazard Frères and its legal adviser was White & Case LLP. The Bank was also advised by M. Favale-Tarter, LLC.

The Steering Committee was advised by Houlihan Lokey and Baker & McKenzie LLP, as financial and legal advisers, respectively.

In September of 2010 BTA Bank completed its first debt restructuring, as a result of which the bank’s debts reduced from $16.65 bln to $4.2 bln. After the restructuring National Welfare Fund Samruk-Kazyna became the major shareholder of BTA Bank (81.48%). The creditors that were not affected by the restructuring hold over 18%.