BAKU, June 7 International Bank of Azerbaijan,
the energy exporting country's biggest lender, said on Wednesday
a London court had supported its request to prevent creditors
pursuing legal action in the United Kingdom, giving it time to
restructure $3.3 billion in debt.
A similar decision was made by a U.S. court last month.
The state-controlled bank said last month it was suspending
payments on some liabilities and seeking creditors' support to
restructure more than $3 billion of debt, mostly owed to foreign
creditors, to tackle bad loans left over from an oil price
IBA presented a restructuring plan to its creditors on May
23 in London and infuriated them by saying they could swap its
debt for sovereign bonds but some would suffer losses and have
to wait longer to be repaid.
"Foreign creditors won't be able to pursue legal actions
against the bank' assets and liabilities without the court's
permission," IBA said in a statement published on its website.
Fitch Ratings has downgraded IBA's long-term issuer default
rating to 'RD' (Restricted Default) from 'CCC' and removed it
from Rating Watch Evolving.
(Reporting by Margarita Antidze; Editing by Ken Ferris)