Necessity to sell objects of APC is caused by big accounts payable of the company - Halyk bank

/INTERFAX-KAZAKHSTAN, Almaty, June 21, 05/ - Commercial Halyk bank (HB) explains necessity to sell objects of big Almaty energy enterprises and two hotels "Kazakhstan" and "Almaty", which are in pledge at this banking institution. Message of HB press-service, spread of Tuesday, particularly, reminds, that on June 15 official press published announcements of HB authorized person about holding of trades on June 27 in the frame of extrajudicial sale of property of Almaty Powers Consolidated JSC (APC) and government enterprises, which were earlier given to bank as a security to execute credit liabilities of above company. Trades include property complexes of APC, and also hotels "Kazakhstan" and "Almaty", given as a security to bank "on agreements of external bails". APC provides heating and energy supply to more than half of consumers of Almaty with population 1.3 m. APC is in utility ownership of city' akimat (administration). According to pres-services, "when claim was given" total debt of APC to HB as per acting credit agreements exceeded KZT8 bn. (current 134.39/$1). This debt, as per message, formed because the bank besides acting credit line of APC for the amount $10 m., refinanced big debt of this company to foreign bank. After this HB by the request of the borrower before heating season increased amount of credit line up to $16 m. in order APC could properly be ready for winter. As, message stresses, at that moment borrower did not have free assets, and the bank could not credit without security such a big amount and for a long time, Almaty akimat provided additional security the above two hotels to HB. As a result the last trench of financial resources bank gave to the company "at the height of heating season by the request of the borrower, who was afraid of uncontrolled actions of his foreign creditor, which could cause social tensions in the company". The bank, understanding consequence of this matter, refinanced APC on privileged terms - with interest 9% APR. In this connection HB announces, that on each stage of relations with APC and city akimat the bank acted strictly in accordance with the law. "All credit agreements and agreements of security were discussed in details and were approved by parties, all corporate and other decisions parties made in the frame of authorized competency by authorized bodies and officials. Security cost of property was determined by agreement of parties taking into account all available sources of information and applying all methods of evaluation", - message of HB stresses. More over, message stresses, initially approved cost of hotels later, on the basis of additional submitted documents, was increased by parties in more than 3 times. Along with this APC, when gave property as a security, according to law gave consent of authorized antimonopoly body "for that security and its sale in case of default" of the company. "All security agreements are properly registered in authorized registration bodies", the message stresses. Meanwhile, press service certifies, "unfortunately, debt of APC to bank only increased, and borrower only made more frequent cases of infringement of his liabilities". In these conditions bank had to create required by legislation provisions "in big amounts". More over, according to press-service, for this period essentially increased accounts payable of APC to third persons, exceeding today KZT11 bn., along with this - "without perspectives of its decrease or redemption". In these circumstances, when total accounts payable of APC exceeded amount of KZT19 bn., HB had to announce default to borrower and provide execution of his obligations to bank from cast of property given for security. Along with this announcement of default and execution of all procedures were approved by the borrower, and akimat of Almaty. In this connection HB "separately stresses that trades are public, any subject of the market, corresponding to qualification requirements, may take part". HB is in one of three biggest banks of the republic. [2005-06-21]