Developments on YKB and Cukurova Deal
As we have not received the initial payment expected per the Supplementary Agreement to the Financial Restructuring Agreement on 12.10.2004, the asset sale and also the early repayment clauses of the Supplementary Agreement have become invalid. Consequently, for asset sales, the clauses of the agreement signed between the Banking Regulation and Supervision Agency (BRSA), the Savings Deposit and Insurance Fund (SDIF) and Cukurova Group on January 31, 2003, will be valid. For the redemption of the outstanding debt, the Financial Restructuring Agreement signed between our Bank and Cukurova Group on December 31, 2002 will be in effect. At the same time, any new proposals will be evaluated.
The current outstanding debt of Cukurova Group in terms of the Financial Restructuring Agreement is $ 2,027 million. According to this agreement, the debts are restructured for a total period of 9 years. The interest payments are due annually, at the end of each year. The first interest payment was made on 26.02.2004 and the next payment is due 31.12.2004. The principal payments will be done semi-annually starting June 2006. The final payment will be done on December 31, 2011.
In the agreement signed between the BRSA, the SDIF and Cukurova Group on 31.01.2003, Cukurova Holding A.S is given the option to purchase all Turkcell Holding A.S and Turkcell Iletisim Hizmetleri A.S. shares owned by our Bank in a single cash payment at market value until 31.01.2005. This corresponds to 13.15% of Turkcell Iletisim, including the 1.8% acquired for the settlement of the first interest payment. The current market value of the 16.53% direct and indirect Turkcell Iletisim shares held as collateral by our Bank is approximately $1 billion.
Yapı Kredi / 15 Oct 2004