NY Court Rejects Suit of International Bank of Azerbaijan Creditors

International Bank of Azerbaijan

International Bank of Azerbaijan

The US Bankruptcy Court of New York has rejected the suit of a group of creditors of the International Bank of Azerbaijan (IBA) who are dissatisfied with the bank's plan to restructure its external obligations.

Judge James Garrity, who presided over the meeting, said that the issues raised by creditors do not violate the fundamental principles of bankruptcy law in the United States.

Attorney Thomas MacWright said at the trial that the lawsuit was filed by creditors who account for less than 10% of the IBA's external obligations. 

"The bank's largest creditor, Cargill Financial Services International Inc., has a stake larger than $715 million in the bank, and they support the restructuring plan for the bank's debts," MacWright said.

Commenting on the court's decision, the chairman of the bank's board Khalid Akhadov noted that this decision eliminates possible legal risks that may arise in connection with the process of the voluntary restructuring of external obligations. 

"The appeal of some creditors against the restructuring process was not satisfied by the court. The process of restructuring continues. We hope that the result will be successful. "

On May 15, the International Bank of Azerbaijan (IBA) filed for bankruptcy in New York to receive assistance in restructuring an outstanding debt of $3.3 billion. The largest bank of Azerbaijan has recently suffered huge losses due to the fall in world oil prices and fluctuations in foreign exchange.

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