OREANDA-NEWS. September 1, 2010. Further to its press release BTA Bank would like to add the following in relation to Samruk-Kazyna's claim filed against certain of BTA Bank's creditors, BVI borrowers and BTA Bank itself.

Samruk-Kazyna’s claim is against Credit Suisse, and is limited to certain parties who subsequently acquired the relevant loans, the BVI borrower companies and given that BTA Bank guaranteed these loans, BTA Bank itself. These loans totalling some USD 300 million were made in the period 2005 to 2007 to several offshore companies incorporated in the BVI and were guaranteed by BTA Bank when it was under the control of its former management. Samruk-Kazyna’s claim, as filed, alleges, amongst other things, that the guarantees issued by former management of BTA Bank during 2005-2007, in respect of these loans, are invalid under Kazakh law, for various reasons, including alleged affiliation between the BVI borrowers and former BTA Bank management.

In connection with this claim, Samruk-Kazyna obtained an injunction from the court in Almaty, Kazakhstan, and under this injunction distributions to specific creditors whose claims are based on the guarantees are prohibited. BTA Bank has notified each affected creditor providing a reference to the specific claim. Distributions to these creditors have been blocked, pending resolution of the proceedings.

For the avoidance of doubt, the injunction has no impact on the restructuring process and the withholding of specific distributions pursuant to an order of the Kazakhstan court is entirely consistent with the completion of the restructuring. As announced previously, BTA Bank expects to obtain a court order in Kazakhstan by 3 September confirming the completion of the restructuring.