New York court rejects IBA creditors’ appeal

Potential legal risks to voluntary restructuring of foreign liabilities of the International Bank of Azerbaijan (IBA) are left behind, Chairman of the IBA Management Board Khalid Ahadov said.

The appeal of a number of creditors (to the New York court) regarding the restructuring process had not been accepted. The court once again ruled that the bank’s assets must remain untouched during the restructuring period, which is proceeding as planned, Ahadov noted.

Earlier, a number of creditors who did not agree with the restructuring of the IBA’s foreign liabilities, appealed to the New York court, stating their non-recognition of the restructuring. The court considered the appeal and ruled in favor of IBA. Thus, the bank’s assets will remain untouched in the process of restructuring.

The International Bank of Azerbaijan has been operating since 1992 and is one of the country’s two state-owned banks.

Source: AZERTAC

   

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