Istanbul - Cukurova Group has announced that it plans to use a $1.5 billion loan to make an early repayment of their debt to the Russian-based Alfa Group.
According to a release issued by Cukurova, the group has signed a loan agreement worth $1.5 billion under the global coordination of J.P Morgan PLC. The release indicated that the Cukurova Group has notified Alfa Group accordingly. Alfa Group, the partner of Cukurova Group's Turkcell, had announced in a written release that Cukurova was violating the agreement by which it borrowed $1.7 billion from the Russian firm. Altimo requested the remaining $1.35 billion debt be paid "immediately" on March 17. On May 11 it also warned financial institutions currently considering extending loans to the Cukurova Group that the company may not be able to show Turkcell shares as a guarantee against its loan demands.
Cukurova says it has paid $357 million in principal and $217 million in interest and denies any default on payments on its debt, which is due in full by 2011.
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