Question: Has a Failure to Pay Credit Event occurred with respect to JSC Alliance Bank?
Additional Information:
Excerpt from investor presentation prepared by Alliance Bank and posted on its website under "Investor Relations", slide 21 (link pasted below). "Events of Default Under the Notes – Update ï®As announced on 13 December 2013, Alliance Bank has stopped making payments into the Collection Account leading to a breach of Condition 6(a) of the Recovery Notes ï®No payment was made on the Recovery Notes on 26 December 2013 ï®As a result, an Event of Default has occurred and is continuing under Condition 14(iii) of the Recovery Notes ï®There are also additional consequences of this default under the terms of the other Notes ï®As result of Alliance Bank’s breach of the covenant under Condition 6(a) of the Recovery Notes, a Potential Event of Default has occurred and is continuing under Condition 11(b) of the Par Notes and the Discount Notes ï®The failure by Alliance Bank to make payment on the Recovery Notes has resulted in creation of ‘overdue liabilities to creditors’ on Alliance Bank’s balance sheet and, as a result, pursuant to the applicable regulations of the NBK, Alliance Bank is deemed to be in breach of the NBK’s liquidity requirements, which constitutes an Event of Default under Condition 11(l) of the Par Notes and the Discount Notes ï®In 2013, Alliance Bank agreed an action plan with the NBK, which outlined steps for Alliance Bank to take to comply with open currency position requirements ï®As certain steps contemplated by the action plan were postponed in light of the deteriorating situation, Alliance Bank failed to implement the action plan by the deadline of YE 2013 ï®As a result, an Event of Default under Condition 11(l) of the Par Notes and the Discount Notes has occurred and is continuing ï®Alliance Bank is in discussions with the NBK as to remedial action with respect to regulatory breaches ï®First hearing with the NBK scheduled for 23 January 2014"
Attachments:
investor presentation on company's website - http://www.alb.kz/up_files/2014alliancbanknvestorpresentation.pdf
