New York Court Agrees to Protect Int’l Bank of Azerbaijan
Foreign creditors will not be able to make claims against the assets of the International Bank of Azerbaijan (IBA) during the process of voluntary restructuring of the bank’s foreign liabilities, the IBA said in a message May 13.
The corresponding decision was made by the New York court on May 12, 2017, based on the appeal of the International Bank of Azerbaijan.
The message said that the IBA appealed to the New York court in order to recognize the process of restructuring of the bank’s foreign obligations and to prevent lawsuits of foreign creditors regarding the IBA’s assets.
“Our appeal was granted by the court, and this shows that we are taking the right steps to successfully complete the restructuring process,” said Chairman of the IBA’s Board Khalid Akhadov, according to the message.
It was earlier reported that the IBA commenced a process of voluntary restructuring within the framework of its financial improvement.
The restructuring plan contemplates a restructuring process to be effected through an exchange of IBA’s senior and junior foreign currency obligations for direct sovereign obligations of Azerbaijan.
The process will lead to a meeting of all creditors affected by the restructuring plan. If approved by two-thirds of the affected creditors by value the plan will be accepted and become binding on all of them.
Pending the implementation of the planned restructuring process, and to ensure equal treatment of all affected creditors, IBA has suspended payments of principal and interest with respect to all obligations to be included in the operation (other than interest under trade finance facilities).
Depositors in IBA will not be impacted by the proposed restructuring, and that the Bank’s normal services and operations will continue to be conducted during the forthcoming process.