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IBA: Decision of London court does not affect result of restructuring process

26 January 2018 09:17 (UTC +04:00)

‘After successful completion of restructuring process, the International Bank of Azerbaijan has applied to US and UK courts for termless recognition of the process in these jurisdictions. Such an appeal is a legal procedure on the basis of UNCITRAL law. This procedure is technical and does not have transborder effect and does not affect the results of restructuring process. Such technical processes are not new for creditors who received the financial instruments offered in exchange for restructured liabilities’, International Bank of Azerbaijan told APA-Economics.

IBA obtained moratorium from the New York court on January 18, 2018.

‘Such decision b London court was expected. Because, unlike the US courts, the UK courts have not power to make a final decision on such cases and this process takes extra time. The London court granted a right to IBA to appeal to the Court of Appeal or Supreme Court of England. This right shows that this case will be solved in the Court of Appeal or the Supreme Court of England’, the bank said.

The bank said the Sberbank and Franklin Tempelton have a little part in the restructured liabilities: ‘The moratorium against claim in the territory of Great Britain entered into force on June 6, 2017. The demands of these creditors don’t have any negative impact on the results of restructuring process because these claims are commercial dispute and out of restructuring process’.