Alliance Bank Delays Pay of 11th Coupon on Bonds
OREANDA-NEWS. May 18, 2010. Alliance Bank (Almaty) informed Kazakhstan Stock Exchange (KASE) the bank delayed payment of the eleventh coupon interest on subordinated bonds KZ2CKY07B394 (KASE, 'buffer category', ASBNb3; KZT1, KZT3.0 bn; 29.10.04 - 29.10.11, semiannual coupon indexed to inflation rate, 8.20 % APR as for the reporting coupon period; 30/360), reported the press-centre of KASE.
According to the prospectus of the issue of the bonds Alliance Bank had to pay the interest on April 29, 2010. The prospectus says "in case the Issuer fails to pay the interest and/or the principal on the bonds, a fine will be accrued, beginning the day following the last day of payment, in favor of bondholders for each day of delay, calculated on the basis of the official refinance rate of the Kazakhstan National Bank as on the day of compliance with money obligations or a part thereof".
Alliance Bank informed:
Herewith Alliance Bank (the Bank) is announcing that on April 29, 2010 the Bank failed to pay a coupon interest on the bonds of the third issue (ASBNb3, NIN KZ2CKY07B394) ... as decision No. 2-21/2009 dated September 18, 2009 of the Almaty special financial court on the restructuring of the bank had come into effect. The decision suspended fulfillment of claims of bank creditors, obligations before which it is proposed to restructure. The bonds of the above-mentioned issue will be restructured. According to the Restructuring plan the Bank stopped accruing interest on restructured bonds beginning November 26, 2009.
Currently fourteen companies listed on KASE informed of insolvency to fully or partially comply with obligations on their bonds. The list of listing companies, that admitted default on bonds, is available at the KASE website at section "Issuers" ("default") at http://www.kase.kz/en/emitters
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