Azerbaijani state rail operator mulls debt restructuring

State-owned Azerbaijan Railways (ADY) has issued a request for proposals for a financial adviser to explore options for the financing of future capital expenditures and the possible refinancing of existing liabilities, the company announced on June 15.

ADY did not provide further details about the expenditures and liabilities it needs assistance with. Its cryptic press release is typical of Azerbaijani public companies and of ADY in particular, and could indicate that it is facing problems repaying some of its debt. Creditors are on guard about Azerbaijani public companies after the country's largest bank, International Bank of Azerbaijan, defaulted on its foreign obligations in May.
ADY did not respond to a request for further comment.
Previously a good debt repayer, Azerbaijan has been struggling with mounting debt resulting from a number of large-scale infrastructure projects and lower revenues from oil and gas exports. Read more