/KASE, March 5, 11/ - Kazakhstan Kagazy (Almaty region), whose bonds are
officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with
the following press-release of March 5, 2011:
quote
Kazakhstan Kagazy JSC (hereinafter the "Group" or the "Company") hereby comments
on the press release, issued by Development Bank of Kazakhstan (hereinafter -
DBK) on 4 March 2011.
Borrowers to DBK are two subsidiaries, members of Kazakhstan Kagazy Group -
Paragon Development LLP and Astana Contract JSC. Kazakhstan Kagazy JSC is not a
direct Borrower to DBK.
Hereby the Group confirms that it will fully interact and cooperate in the
process of inspection made by DBK and law authorized agencies on fact of misuse
of loan funds mentioned by DBK in public. Also in parallel to this, the Group
initiated arrangement for own internal investigation in order to assist the
process. The Group does not interrupt negotiation process with DBK and intends
to continue it in order to achieve satisfactory for both parties results.
The Company also would like to highlight the fact that it continues the
financial restructuring process with creditors.
The total debt amount is 238 mln. US dollars, i.e.: 103 mln. US dollars - bond
loan (46% of the total debt of the Group); loan to Alliance Bank JSC - 39,630
mln. US dollars (16% of the total debt of the Group); loan to EBRD - 36 mln. US
Dollars (14% of the total debt of the Group); and a loan to DBK - 59 mln. US
dollars (24% of the total debt of the Group).
To date the Group restructured loan to Alliance Bank and part of the bond issue,
which in monetary terms amounts to 76 mln. US dollars or 32% of the total debt
of the Group.
The main objective of the debt restructuring of the Group is full repayment of
the principal, without its reduction, with extension of its maturity period,
taking into account the feasibility of the Group to service the debt.
Bond loan is serviced with cash flow of the paper business and the current
situation with DBK, from the Group opinion, should not have a negative impact
on the performance of the obligations to the bondholders.
unquote
This press-release is available on KASE website, at
-
http://www.kase.kz/files/emitters/KKAG/kkag_reliz_050311.pdf - in Russian;
-
http://www.kase.kz/files/emitters/KKAG/kkag_reliz_050311_eng.pdf - in
English.
[2011-03-05]