International Bank of Azerbaijan restructuring complete as of Sept. 1

By Caroline Salls

Pittsburgh, Sept. 1 – OJSC International Bank of Azerbaijan said the initial distribution of entitlements under its restructuring plan occurred Friday, marking Sept. 1 as the restructuring date under the terms of the plan.

According to a news release, the plan was previously approved by an affirmative vote of holders of 93.9% of affected claims at a meeting held on July 18, by the Financial Market Supervisory Authority of Azerbaijan on July 25 and by the Nasimi District Court in Baku at the hearing of the bank’s application that took place on Aug. 17.

The bank said the occurrence of the restructuring date constitutes successful conclusion of the restructuring, subject only to termination of the proceedings in the Nasimi District Court.

Entitlements that were not distributed on Friday were deposited into an account with a distribution agent pending satisfaction by the relevant claimants of conditions for distribution of their entitlements in accordance with the plan terms.

“The successful closing of the restructuring process earlier today is a key step in the bank’s plan to ensure its long-term viability,” chairman Khalid Ahadov said in the release.

“The bank is now in a position to work with the Ministry of Finance on completion of the remaining part of the transfer of certain impaired assets to Aqrarkredit.

“The combination of these two transactions will restore the bank’s capital position, provide the bank with the necessary financial strength to implement its business plan aimed at restoration of long-term profitability and also facilitate the Government of Azerbaijan’s objective of privatizing the bank by the end of 2018.”

Lazard acted as financial adviser to the bank, and White & Case LLP acted as its legal adviser in connection with the restructuring. D.F. King acted as information and tabulation agent in connection with the restructuring.

Baku, Azerbaijan-based International Bank of Azerbaijan filed bankruptcy on May 11 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15 case number 17-11311.

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