Turkey's Cukurova weighs restructuring $1.6 billion loan

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The company used the money in 2014 to reclaim a 13.8 per cent stake in Turkcell Iletisim Hizmetleri, which it had pledged to LetterOne Investments under a debt deal nine years earlier.

Thursday 14, March 2019

(Bloomberg) --Turkey’s Cukurova Holding is considering to ask Ziraat Bank to restructure a dollar-denominated loan it took out from the state-owned lender five years ago.

Cukurova has so far only made interest payments on the $1.6 billion loan and will seek a meeting with the bank before a pre-scheduled payment in July, should it decide to ask for the debt to be reorganised, the people said, asking not to be identified because the deliberations are private.

 The 10-year loan had a three-year grace period.

If it opts for a restructuring, Cukurova will join several other Turkish companies that have sought to reorganise debt denominated in foreign currencies after last year’s crash in the lira made it difficult to repay the loans.

Representatives at Cukurova and Turkcell declined to comment when reached by phone. A Ziraat Bank spokesman wasn’t immediately available for comment. The lender’s Chief Executive Officer, Huseyin Aydin, was recently appointed to Turkcell’s board.

TAGS : Ziraat Bank, Cukurova Holding, Lira

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