This material preserves a detailed historical timeline of events surrounding BTA Bank. It helps to trace the decisions of the state, shareholders, creditors and the courts during the financial crisis and the subsequent restructurings.
Timeline of events
2 February 2009 The Samruk-Kazyna National Welfare Fund (NWF) entered BTA Bank.
2 February 2009 The Government removed from office the chairman of the board of directors of JSC "BTA Bank" Mukhtar Ablyazov and the bank's first deputy chairman of the management board Zhaksylyk Zharimbetov.
6 April 2009 Kairat Aitekenov, managing director and member of the board of the NWF, issued an instruction not to conclude any further contract with Ernst&Young for audit activities.
5 June 2009 BTA Bank's deputy chairman Nurzhan Botabayev terminated the contract with Ernst&Young.
7 August 2009 The chairperson of the Financial Supervision Agency (AFN), Elena Bakhmutova, stated in an interview with the newspaper "Business and Power": "... I want to say that we actually have complaints about the auditors. Because they (Ernst&Young - editor's note) prepared the report on BTA Bank for 2007 and for the first 9 months of 2008. And they are also at fault for not detecting obvious violations".
14 August 2009 Central Asia Monitor published the article "'Bent' audit" about the ambiguous activities of Ernst&Young at BTA Bank.
17 August The chairman of the board of directors of BTA Bank, Anvar Saidenov, said in an interview with KazTAG: "... the auditors (Ernst&Young - editor's note) came across the fact that loans were being rewritten to shell companies in offshore jurisdictions at the documentary level precisely during the period when the audit for 2008 was being completed. From my point of view, it is somewhat incorrect to say that in the middle of last year they saw no embezzlement, but in the first quarter of this year their 'eyes were opened'. It was precisely at the end of last year and the beginning of 2009 that this process was going on very actively."
20 August 2009, the day after Botabayev was dismissed, Ernst&Young submitted to BTA Bank for approval an additional agreement to the audit services contract, effectively ignoring the fact that the contract had been terminated.
21 August 2009 The Prosecutor General's Office responded to our request in which we asked for an assessment of the activities of the audit company Ernst&Young. Saken Ikhsangaliev, assistant to the Prosecutor General of the Republic of Kazakhstan and head of the investigative team in the "Ablyazov case", showed awareness of the issue and stated that "the investigation materials concerning persons, institutions and organisations not directly connected with the embezzlement of BTA's funds have been separated into a separate proceeding".
27 August 2009 An extraordinary absentee general meeting of shareholders of BTA Bank was held, represented by a single shareholder owning 78.8% of the total number of voting shares. The agenda contained a single item - the appointment of the audit organisation of JSC BTA Bank. The Samruk-Kazyna NWF approved LLP Ernst&Young as the auditor of BTA Bank.
2009 - 2010 - Restructuring of BTA Bank's external debt
22 December 2011 – JSC BTA Bank (hereinafter, the "Bank") announced that, in accordance with decision No. 51 of the Board of Directors dated 19 December 2011, a general meeting of the Bank's shareholders is being convened, to be held on 26 January 2012 in Almaty.
The agenda of the Bank's general meeting of shareholders will include the question of the need to restructure a certain part of the Bank's financial indebtedness in order to reach a compromise agreement with creditors. The planned restructuring will apply to the obligations to creditors issued by the Bank as part of the restructuring completed in 2010.
23 December 2011 - Today JSC BTA Bank (hereinafter, the Bank) announced that a hearing in the High Court of London on the Bank's application for the committal to custody of the Bank's former Chairman of the Board of Directors, Mukhtar Ablyazov, has ended. The Bank accuses Ablyazov of managing assets under his control in breach of a freezing order and the related receivership order over the assets issued by the English court, of misleading the court regarding the assets he holds, and of giving false testimony.
11 January 2012 – JSC BTA Bank (hereinafter, the "Bank") announced that Marat Zairovich Zairov had resigned as Chairman of the Management Board of the Bank of his own accord for health reasons.
16 January 2012 – JSC BTA Bank (hereinafter, the Bank) thanks holders of global depositary receipts (GDRs) and creditors for taking part in the meetings and for the constructive approach shown during the investor presentations in Brussels, Frankfurt, Geneva, London, Miami, Munich, New York and Stockholm organised by the Bank on 11 and 12 January of this year.
23 January 2012 – JSC BTA Bank (hereinafter, the Bank) is pleased to announce that it has arranged meetings, starting on 23 January 2012, with holders of its Senior Notes, Special Discounted Debt Instruments, Subordinated Notes, Recovery Notes and participants in the RCTFF (Revolving Credit Trade Finance Facility) who have expressed interest in joining the Creditors' Committee, which will be formed to represent the interests of the relevant creditors of the Bank. 26 January 2012, Almaty - JSC BTA Bank (hereinafter, the "Bank") reports on the results of the General Meeting of Shareholders (hereinafter, the "GMS") held today in Almaty, and on progress on matters relating to the proposed restructuring of a certain part of the Bank's financial indebtedness.
7 February 2012 – JSC BTA Bank (hereinafter, the Bank) is pleased to announce that, following meetings with holders of senior notes, special discounted debt instruments, subordinated notes, recovery notes and participants in the RCTFF (Revolving Credit Trade Finance Facility) held over the past two weeks, a Creditors' Committee has been formed to represent the interests of the Bank's various creditors.
9 February 2012 – JSC BTA Bank (hereinafter, the "Bank") reports that the Bank's corporate website continues to be subject to DDoS attacks. As a result, the website and internet banking systems may operate unstably.
3 April 2012 – JSC BTA Bank (hereinafter, the Bank) is pleased to report the completion of the formal appointment of the Creditors' Committee to coordinate discussions concerning the proposed restructuring of the Bank's financial indebtedness.
11 April 2012 – JSC BTA Bank announces the election of new members of the Board of Directors following the extraordinary general meeting of shareholders of JSC BTA Bank held on 11 April 2012.
Almaty. 3 May 2012 - JSC BTA Bank (hereinafter, the Bank) reports that on 2 May 2012 it applied to the Specialised Financial Court of Almaty with a petition to begin restructuring of its financial indebtedness in accordance with the legislation of the Republic of Kazakhstan, which is part of this process.
Almaty, 10 May 2012 – JSC BTA Bank (hereinafter, the "Bank") reports that on 8 May 2012 the Specialised Financial Court in Almaty (hereinafter, the "Court") granted the Bank's petition for restructuring of financial indebtedness, filed by the Bank on 2 May of this year.
16 May 2012 - By its decision of 16 May, the Board of Directors of BTA Bank elected five new members of the bank's management board, the credit institution reported. Managing directors Pavel Prosyankin, Ulukbek Maksatbekuulu, Sholpan Basambaeva, Aslan Sultanov and Zhandos Yesenbay were elected as members of the management board, BTA's statement says, as reported by Novosti-Kazakhstan.
12 July 2012 – JSC BTA Bank (hereinafter, the Bank) announces that the restructuring process begun in respect of the Bank in the Specialised Financial Court in Almaty has been recognised in the United Kingdom as a foreign main proceeding.
This recognition is part of the Bank's ongoing restructuring process and allows the restructuring to proceed without any delays that might arise from claims against the Bank's assets, since the Bank will be protected in the United Kingdom from:
1. the commencement or continuation of individual actions or individual proceedings concerning the Bank's assets, rights, obligations or liabilities;
2. enforcement proceedings against the Bank's assets.
23 November 2012 – The Board of Directors of JSC BTA Bank decided to create a subsidiary intended to acquire doubtful and non-performing assets held in the Bank's loan portfolio.
December 2013 - The Government of the Republic of Kazakhstan proposed that Halyk Bank buy out the shares of BTA and all affiliated companies in exchange for shares of the pension fund of Halyk Bank
04.07.2014 - KAZKOM and the private investor Kenes Rakishev each acquired 46.5% of BTA Bank's shares from the Samruk-Kazyna fund. The remaining 4.26% of BTA Bank shares held by the state were transferred by Samruk-Kazyna to KAZKOM in trust management. This means that KAZKOM obtained full operational control over BTA, which became part of the KAZKOM group.
Why the events of 2009 became a turning point
The entry of the Samruk-Kazyna NWF into BTA Bank's capital on 2 February 2009 became one of the most visible episodes of anti-crisis support for Kazakhstan's financial sector. After the change of management, the bank faced the need to review its obligations, negotiate with international creditors and protect its assets in different jurisdictions.
A historical timeline matters not merely as a list of dates. It shows how a banking crisis affects depositors, creditors, investors, subsidiaries and the insurance market. Decisions on capital, obligations and corporate structure can change the position of a large number of related companies.
The first restructuring of financial indebtedness
In 2009-2010 BTA Bank negotiated with the Creditors' Committee and prepared a restructuring plan. According to the bank's official history, on 28 May 2010 creditors approved a plan for financial indebtedness in the amount of 2,442 billion tenge. The process included changes to the terms, conditions and structure of obligations, as well as court recognition of the agreements.
Restructuring does not mean a simple write-off of all debts. It is a set of legal and financial measures aimed at an agreed change of obligations and the continued operation of the organisation. To assess the result one must take into account the conversion of claims, the new instruments, the repayment schedules and the effect on capital.
The second restructuring of 2012
On 3 May 2012 the bank applied to the Specialised Financial Court of Almaty with a petition to begin a new restructuring. On 8 May the court granted the petition, providing legal protection within the process. After negotiations, on 5 December 2012 creditors approved a plan to restructure indebtedness in the amount of 1,611 billion tenge, and on 13 December the court approved it.
The bank's official materials indicate that the plan was supported by creditors holding claims of 1,511 billion tenge, or 93.8% of claims. In December the process also received court recognition and protection in a number of foreign jurisdictions. These events supplement the dates given in the preserved timeline below.
Links with subsidiaries and insurance organisations
BTA's history affected more than banking activity. The group included subsidiary and related organisations, including participants in the insurance market. Decisions on reorganisation, merger or transfer of portfolios must be considered separately for each legal entity, since banking and insurance licences have different legal natures.
Services in compulsory lines of insurance are provided only by insurance companies holding the relevant licence. A bank, the brand of a financial group or an intermediary does not replace the insurer named in the policy. The holder of an old contract should check which legal entity is liable under the obligation and whether the portfolio was transferred to another organisation.
How to verify historical information
- compare the date of the news report with the date of the event itself;
- separate statements by the parties from court decisions that have entered into force;
- check amounts and currency in primary documents;
- take into account subsequent changes and the results of appeals;
- verify the names of legal entities and subsidiaries;
- use the official archives of the bank, KASE and government bodies.
The practical significance of the timeline
For a former client or creditor, not only the general history matters but also the specific contract. Keep statements, payment documents, correspondence, notices of assignment and court acts. If an organisation has changed its status, the current debtor or legal successor is established from official documents, not from old advertising or the name of a brand.
For researchers of the financial market, the BTA Bank timeline is an example of a large-scale cross-border restructuring. It demonstrates the role of a state fund, creditors' committees, a specialised court and the recognition of proceedings in foreign jurisdictions.
Brief conclusion
The timeline of BTA Bank events reflects a complex period of transformation of Kazakhstan's banking sector. The list of dates preserved below has been supplemented with explanations so that the reader can understand how the decisions are interrelated and verify them against primary sources. The material is historical and informational in nature and is not an assessment of the current rights or obligations of any particular person.