One of Turkey’s Largest Food Producers Seeks $2 Billion Restructuring

(Bloomberg) -- The parent company of one of Turkey’s largest food producers is in talks with lenders to restructure a portion of its $2 billion debt pile, according to two people with knowledge of the matter.

Anadolu Birlik Holding AS wants to extend maturities on loans it took out to finance investments in the energy sector, the people said, who asked not to be identified because the talks are private. The company is seeking to restructure less than half of its total debt and the negotiations may be finalized within the next two months, one of the people said.

Anadolu Birlik is the latest in a string of Turkish energy companies struggling to pay down their foreign-currency loans. The lira has shed around 60 percent of its value against the dollar since 2013, faster than producers can raise power prices. This means some utilities earn less than what they need to service their debt.

The company borrowed more than $1 billion to acquire two power plants from the government in 2013 and 2015 for around $1.7 billion. Energy companies owe just over $50 billion to banks, according to Tusiad, Turkey’s largest business association.

Konya Seker AS, an Anadolu Birlik unit, and its partner Siyahkalem Muhendislik borrowed $786 million in a 12-year project finance loan in 2013 for the Kangal coal-fired plant it bought for $985 million, according to data compiled by Bloomberg. The lenders in the deal were TC Ziraat Bankasi AS, Turkiye Garanti Bankasi AS, Turkiye Is Bankasi AS, Turkiye Halk Bankasi AS, Turkiye Vakiflar Bankasi TAO and Yapi Kredi Bankasi AS.

Anadolu Birlik also borrowed around $400 million for the Soma coal-fired plant it acquired in 2015 for $685 million, according to one of the people.

Representatives for the company weren’t available for comment during normal business hours.

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