New York Court passed a judgment on protection of the assets of the International Bank of Azerbaijan OJSC (IBA) from foreign creditors' claims in the US, at the request of the bank on May 12, 2017.
IBA press service told APA-Economics that according to the judgment, during implementation of the voluntary restructuring plan of IBA’s foreign currency obligations, foreign creditors couldn’t claim against the assets of the bank.
“As we stated, the voluntary restructuring plan of IBA’s foreign currency obligations serves the strengthening of the bank's financial condition. This plan will ensure IBA’s long-term financial stability and increase the bank's market value before privatization. One of important directions of this process was preventing foreign creditors’ claims against IBA’s assets in foreign countries. IBA has appealed to the New York Court for recognition of its restructuring plan in the US and preventing such claims through the US courts. The court upheld our appeal. All of these show that necessary steps have been taken for successful implementation of the restructuring plan,” said head of the bank's Management Board Khalid Ahadov.
The restructuring plan contemplates a restructuring process to be effected through an exchange of IBA senior and junior foreign currency obligations for direct sovereign obligations of the Republic of Azerbaijan. The restructuring plan will only affect IBA’s foreign currency obligations, and that depositors will be unaffected by the plan. Individual and corporate depositors of IBA will not be affected by restructuring plan. Furthermore, bank’s normal services and operations are unaffected by the process.