Yuksel eyes amended restructuring process in light of scheme delays

By Caroline Salls

Pittsburgh, Jan. 19 – Yuksel Insaat AS will immediately move to implement an amended notes restructuring process amid scheme of arrangement timetable delays triggered by “the challenging prevailing political and economic climate in Turkey and the Middle East,” according to a news release.

As previously reported, Yuksel has been working with investors and banks in order to finance a property development project intended to repay note creditors under its current scheme of arrangement as quickly as possible.

However, as a result of delays in those discussions, the company said it can no longer be confident that the current scheme timetable can be met.

Under the proposed amended restructuring process, the notes will benefit from security over Yuksel’s assets in the Çubuklu region of Istanbul.

The company said it would retain, for a limited period, the ability to redeem the notes at a discount in return for a cash payment as called for under the current scheme.

Based on its latest discussions with potential investors, Yuksel said it is confident that it will be able to raise sufficient funding for the discounted redemption within the relevant timeframe.

In addition, the company said it is in advanced discussions with an informal committee of note creditors and its advisers to finalize the terms for an amended restructuring process on this basis.

In order to ensure that revised restructuring can be implemented in the most efficient manner, Yuksel said a scheme meeting scheduled for Jan. 25 was cancelled.

Any votes already cast will be discounted/returned, and all blocked notes will be returned to the note creditors, pending a further announcement from the company confirming the revised scheme timetable in the coming days.

Yuksel Insaat is a construction company based in Ankara, Turkey.

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