APF GRANTUM comments on VITA (Kazakhstan) bankruptcy litigation report to KASE

26.04.11 15:21
/KASE, April 26, 11/ - Accumulative Pension Fund GRANTUM (a subsidiary of Kazkommertsbank) (Almaty, in heading and hereinafter - APF GRANTUM) provided today to Kazakhstan Stock Exchange (KASE) a communique supplying comments on information provided to KASE by VITA on the state of affairs with regard to VITA bankruptcy litigation. This communique was already published on April 22, 2011 on KASE website by the Information Agency of Financial Markets IRBIS: quote VITA in its letter to Kazakhstan Stock Exchange failed to indicate the complete list of creditors which requested to declare VITA bankrupt. That list is far broader: it includes pension funds, insurance companies and other financial institutions, as well as individuals claiming outstanding salary. According to Minutes of VITA creditors meeting on the issue of including the company into the Post-Crisis Recovery Program dated March 17, 2011 no votes emerged on the part of creditors who have significant loan-related claims, such as: KazAgroFinance and Agricultural Credit Corporation, both subsidiaries of the KazAgro National Management Holding, Eurasian APF, SC Eurasia, Zhilstroysberbank, Bank Astana Finance. Hence, the number of those who voted "for" makes up 68%, but not 90%, as was indicated in VITA's letter to Kazakhstan Stock Exchange. Also the VITA group has massive tax liabilities, outstanding obligations amounting to several hundreds of millions of tenge towards suppliers - farmers, employees who had not participated in creditors meetings. In addition, according to public statements by KazAgroGarant, another KazAgro subsidiary, VITA faces claims from Bank Astana Finance for guarantee payments due on over KZT1 bn worth of grain receipts issued to VITA by grain elevators. The VITA group has only one major enterprise in Kazakhstan, with its main assets stationed in Kyrgyzstan and Russia. Inclusion of VITA into the Post-Crisis Recovery Program and government subsidies, preferences or benefits on assets outside Kazakhstan are rather impossible. (For reference: VITA group's total overdue liabilities only towards pension funds, banks and other financial institutions exceed USD200 m). In its letter to Kazakhstan Stock Exchange, the company hints at a prospective investor. However, not once during talks or litigations has the company presented to creditors a clear commitment by an investor to fund anything or re-finance debts. With all that in mind, minutes of VITA creditors March 17, 2011 meeting suggest that even possible funding from outside would not cover VITA's outstanding liabilities. APF GRANTUM deems impossible financial rehabilitation due to the company being overloaded with debt. Caring very much about interests of its depositors APF GRANTUM does its best to recover debts receivable and detect all assets of the VITA group in Kazakhstan and outside which could be used for the debts settlement. Apart from all other things, it should be noted that with protection of investors in mind the government recently adopted law amendments stipulating responsibility of officers of joint-stock companies for damage caused by their actions and (or) negligence, as well as for losses as a result of their undue actions or neglect. unquote Earlier there was related KASE news dated April 20, 2011 "VITA (Kazakhstan) briefs on bankruptcy litigation progress" at http://www.kase.kz/en/news/show/1134002 [2011-04-26]