Turkey’s Doğuş in talks with banks on debt restructuring: Sources

ISTANBUL-Reuters

Turkey’s Doğuş Holding is in talks with banks on debt restructuring, sources familiar with the matter said on April 7.

Doguş’s outstanding loans stood at 23.5 billion Turkish Liras ($5.81 billion) at the end 2017, up 11 percent from the year before, including loans worth 7.5 billion lira maturing this year.

Loans of around 18.6 billion lira were denominated in euros and dollars with maturities from 2020 to 2030, the company’s statements showed, while the rest were denominated in lira or other currencies.

One source familiar with the talks told Reuters that most of the company’s loans were project finance loans and would not need restructuring. Doğuş asked for a maturity extension on less than half of its bank debt, the source said.

Doğuş “has the ability to pay” and a maturity extension of a few years would “ease the burden” on the company, the source added.

The Hürriyet newspaper said Doğuş had started talks with 10 banks on its outstanding loans.

“There is a problem in the group’s cash flow, and it is normal for it to start talks with banks in this regard,” another source said.

Two sources said Doğuş was considering asset sales. Doğuş declined to comment.

Doğuş Holding reported a loss of 2.3 billion lira in 2017 after a 2 billion lira loss in 2016. Its sales last year rose 16 percent to 20.4 billion liras.