The story
Foundations and early years
Following the dissolution of the Soviet Union in 1991, the Kazakh operations of the Soviet Promstroybank were re-organized as Turan Bank and those of the Soviet Vnesheconombank were re-organized as Alem Bank. On 15 January 1997, Turan Bank and Alem Bank merged to form Bank Turan Alem (BTA), a joint-stock company in accordance with the Decree of the Government of the Republic of Kazakhstan "On reorganization of the Kazakh joint-stock bank Turan Bank and joint-stock bank Alem Bank Kazakhstan". On 1 October 1998 Bank Turan Alem CJSC was renamed to Bank TuranAlem OJSC and then to Bank TuranAlem JSC.
In spring 2008 the bank underwent rebranding, which resulted in the change of the name, logo and corporate identity of the bank. After this the BTA Bank JSC name was no longer perceived as an acronym.
Fraud & Embezzlement
It was revealed in 2009 that the bank was defrauded of up to $6 billion of cash in one of the world's biggest cases of financial fraud. The bank's former chairman Mukhtar Ablyazov is alleged to have perpetrated the fraud. Ablyazov has said that under his leadership BTA did conceal assets to protect them from being seized by the government. Private investigators have been used in an attempt to recover some of the funds, who in October 2010 found documents and disc drives relating to the bank in a self-storage facility in north London. A found documents and disc drives relating to the bank in a self-storage facility in north Londonthrough which BTA had transacted.
Bankruptcy
BTA Bank sought bankruptcy protection in 2010 from U.S. creditors while it restructured $11.6 billion of debt. The debts were incurred by alleged mismanagement and embezzlement by former BTA Bank Chairman Muktar Ablyazov.
Restructuring
In February 2009 Samruk-Kazyna Fund purchased 75.1% of BTA Bank's shares as part of contingency measures of the government of the Republic of Kazakhstan. As the result the bank gained additional capital of KZT 251.3 bln.
During 2009–2010 BTA Bank has completed restructuring of its certain financial indebtedness. As the result the bank's indebtedness decreased from $16.65 bln. to $4.2 bln, Samruk-Kazyna Fund's share in the capital increased up to 81.48%, both domestic and foreign creditors became the Bank's shareholders holding 18.5% in the capital.
Due to aggravation of the Bank's financial status during 2011, relative shortage of liquid assets and negative financial performance, in 2012 BTA Bank started the second restructuring which resulted in cancellation of the Bank's certain financial indebtedness. In consideration, the creditors received $1,618 cash and $750 mln. New Notes.
BTA Bank also entered into a revised Revocable Committed Trade Finance Facility (RCTFF) with liabilities amounting to around $348 mln. as of the restructuring date. Samruk-Kazyna Fund extended $1.592 bln. loan to BTA Bank JSC subordinated to the New Notes and RCTFF.
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During the restructuring BTA Bank was recapitalized for around $10 bln. Share of Samruk-Kazyna in the Bank's equity increased up to 97.3%. Creditors' share amounted to 2.5%, share of minority shareholders, who held shares prior to 2009–2010 restructuring, amounted to 0.2% of the Bank's shares in aggregate.
Events after 2013
After successful completion of rather difficult and scaled restructuring process BTA Bank focused on restoration of its former market positions and currently is a stable and sustainable financial institution. During the first six months of 2013 BTA Bank received KZT 15.579 bln. of net income (unaudited interim condensed consolidated IFRS statements).
In June 2013 The board of directors terminated powers of Mr. Yerik Balapanov who chaired the bank's management board since April 2012 upon his own initiative. On 5 August 2013 Mr. Kadyrzhan Damitov was appointed as the chairman of the management board of the Bank
In February 2014 it was announced that the BTA Bank and Kazkommertsbank will merge by the end of the largest bank in Central Asia. The Kazkommertsbank will take over 46.5 percent of BTA shares of the Kazakh state holding company Samruk-Kazyna, another 46.5 percent will buy the current chairman Kenes Rakischev, one of the largest private investors in Kazakhstan. The Kazkommerzbank and Rakischew will acquire its shares for each 72 billion Tenge (about 465 million US dollars). [8]
From Wikipedia’s article on BTA Bank, shared under CC BY-SA 4.0.4