A U.K. court Monday granted Turkcell Iletisim Hizmetleri AS
(TCELL.IS) shareholder Cukurova Holding AS an extension to repay
the $1.56 billion it owes a Russian shareholder in Turkey's largest
mobile phone operator, a U.K. appeals court said Monday.
Cukurova requested the extension following a ruling on July 9
which gave the Istanbul-based conglomerate 60 days to repay a loan,
interest and damages to Alfa Group.
The U.K. court case is in the latest spat in a six-year tug of
war between Cukurova and Alfa Group for control of Turkcell.
Cukurova lost control of the mobile phone operator after pledging a
13.8% stake in the company for a loan of $1.35 billion from the
Moscow-based company, which it later defaulted on.
In an e-mailed statement, the U.K. court said it suspended
Cukurova's payment of interest to Alfa as of Monday while a
separate appeal involving Cukurova and TeliaSonera AB (TLSN.SK),
another major Turkcell shareholder, is resolved in New York.
Cukurova pulled out of a deal with TeliaSonera to sell the same
stake pledged as collateral to Alfa. A New York court had ordered
Cukurova to pay about $1 billion in damages and costs to the
Swedish company.
The court said that "if the New York Court orders which have the
effect of preventing repayment are reversed, then interest at 8%
p.a. over LIBOR will start to become payable (subject to any other
date that the parties may agree or the Board may order) after the
end of a further 19 days."
Turkcell shares Monday closed 0.9% higher at TRY11.25, amid a
0.53% higher overall Istanbul market.
Cukurova and Alfa weren't immediately available for the comment
when contacted by Dow Jones Newswires.
Write to Yeliz Candemir at yeliz.candemir@wsj.com
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