BTA // We place BTASKZ’18 on a HOLD following today’s BTA announcement that an agreement was made on a non-binding term sheet on restructuring of US$11.2 bn of financial debt with a steering committee

Autor: koelner Datum: Heute, 14:19

Meinung der UBS zum Plan bei BTA: Second restructuring terms agreed Terms better than expected We place BTASKZ’18 on a HOLD following today’s BTA announcement that an agreement was made on a non-binding term sheet on restructuring of US$11.2 bn of financial debt with a steering committee excluding Nomura. Holders of Senior notes, Recovery notes and Original Issue Discount notes are to receive new notes and cash. New notes are to have US$750 mn notional, 5.5% coupon and maturity in 2022. There is currently no clarity as to the ranking of the New notes. Holders of US$2,247 mn senior notes would receive US$957.8 mn in cash plus US$88.6 mn of New notes or 42.6 c/US$ in cash plus 3.95 c/US$ in new notes a total payout of 46.6 c/US$. Holders of US$5,107 mn of recovery notes would receive US$660.2 mn in cash plus US$61.2 mn in new notes or 12.9 c/US$ in cash and 1.2 c/US$ in new notes a total payoff of 14.1 c/US$. The amounts to be repaid to subordinated noteholders are to be determined by the bank and would not change the entitlements of other creditors. Currently the total cash payment is US$1,618 mn or 14.4 c/US$ and total new notes are US$750 mn or 6.7 c/US$ implying a total payoff of 21.1 c/US$ on the US$ 11.2 bn financial debt being restructured.  This might change once the restructuring terms of subordinated notes are announced. Samruk-Kazyna provided a generous support package of conversion of deposits into equity increasing its shareholding of the bank, increasing coupons to 6% from 4% on its bonds which are held by BTA and providing a US$1.592 bn loan at up to 4% p.a. coupon to BTA which is subordinated to new notes. We note that SK’s deposit as of 9M11 IFRS stood at US$2.1 bn We note that total cash payoff of US$1618 mn is US$26 mn above SK loan. This US$26 mn is to be paid to recovery note holders from the existing recovery units collection account. Post restructuring the bank would restore its T1 capital ratio above 10% under BASEL II with profitability to be restored after 2014. The restructuring is expected to be completed by end of FY12. Ich bleibe vorerst mal drin. Die gebotenen 37 erscheinen mir noch zu wenig

Belize Didn't Default On Superbond

Belize Didn't Default On Superbond
posted (September 20, 2012)

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When we left you last night - the conclusion was that Belize had defaulted on its Superbond debt - but tonight, it seems not. A press release coming from the Coordinating Committee of Belize Bondholders - which represents the owners of more than 50% of the Superbond - issued a release today saying two important things: One, that they've given a 60 day extension on the payment due date for talks to progress, and two, that the Government has made a partial payment of the interest payment that was due on August 20th. That partial payment is 23.4 million Belize dollars, half of the 46 million that was due.And the release from the Committee also shows a marked change of tone. Whereas in the past they complained about lack of information and dialogue, today's release says quote, "conversations with the GOB are progressing towards a mutually agreeable restructuring of the Bonds and both sides have identified an appropriate framework to advance negotiations."
The Committee welcomes the partial payment and in exchanges co-chair AJ Mediratta offers, quote "the Committee has agreed not to seek legal remedies for a period of 60 days…The Committee is recommending that other bondholders refrain from seeking legal remedies during this period."
So, no legal action and where it once complained about a lack of information, the release now says, quote, "The Committee takes note of the debt servicing challenges facing Belize."
It's a Kumbaya moment for sure, but there are tough days ahead and a press release from the government of Belize says negotiations will advance on quote, a "workable approach to accounting for the effect on Belize's debt servicing capacity."With the breathing room that this agreement gives, the next major development are expected in October when government starts to formally offer to exchange the existing bonds.

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