Goldman Sachs leaves as BTA Advisor
02.07.2009
Investment bank Goldman Sachs will no longer advise Kazakhstan's largest bank, BTA, on the restructuring of its $15 billion debt, BTA said on Wednesday.
BTA is retaining UBS, its second key adviser on debt restructuring, a spokesman for the Kazakh bank said.
BTA did not say why Goldman Sachs had left and the US lender declined to comment on the matter.
BTA, which was nationalized in February, hired Goldman Sachs in March and later announced plans to restructure its debt after defaulting on $550 million in bilateral loans. It has said the restructuring would be completed in August.
BTA has said it would record a loss of about $8 billion in 2008 due to bad loan write-downs. The loss will wipe out its capital, putting negative shareholder equity at about $5 billion.
If debt talks fail, BTA faces bankruptcy, according to Reuters.