Bloomberg News

BTA Bank Directors Chosen by Creditors Will Be Paid in Advance

June 26, 2012

BTA Bank, the Kazakh lender that plans to restructure its debt for the second time in as many years, will pay directors assigned by creditors in advance.

Remuneration for the first six months will be paid before the work has been completed, as recommended by BTA’s steering committee, according to the minutes of an extraordinary meeting of the state-run lender’s shareholders published today on the Kazakh stock exchange website. Shareholders voted unanimously for the measure June 21 in Almaty, the minutes show.

Sergey Babayan and Jacek Brzezinski were selected as directors representing the interests of creditors on BTA’s board after two previous representatives resigned following BTA’s failure to make a January interest payment on its July 2018 dollar bonds. Sovereign wealth fund Samruk-Kazyna took BTA over in February 2009, two months before the nation’s largest lender at the time defaulted on $12 billion of debt.

BTA’s net loss for the year jumped to 1.308 trillion tenge ($8.8 billion) as of June 1 from 711 billion tenge a month earlier, the central bank’s financial oversight committee said today in a monthly report on its website.

To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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