{"id":185947,"date":"2017-08-07T16:05:34","date_gmt":"2017-08-07T16:05:34","guid":{"rendered":"https:\/\/www.meydan.tv\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/"},"modified":"2021-10-29T14:25:54","modified_gmt":"2021-10-29T10:25:54","slug":"cargill-owed-715-million-by-bankrupt-azerbaijani-bank","status":"publish","type":"post","link":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/","title":{"rendered":"Cargill owed $715 million by bankrupt Azerbaijani bank"},"content":{"rendered":"
\n \"International
\n International Bank of Azerbaijan
\n <\/figcaption><\/figure>\n

\n
\n This article was originally published by the
\n
\n Star Tribune
\n <\/a>
\n <\/i>\n<\/p>\n

\n When the largest bank in Azerbaijan filed for bankruptcy this spring, Cargill once again experienced the pitfalls of lending in countries with shaky economies and opaque regulation.\n<\/p>\n

\n Cargill is the International Bank of Azerbaijan\u2019s largest creditor, owed $715 million.\n<\/p>\n

\n The
\n
\n Minnetonka
\n <\/a>
\n -based giant known best for food and agriculture also is in the trade finance business, and the Azerbaijani bank is the latest overseas bank to flop owing Cargill money. Three Ukrainian banks that collapsed in recent years together owed Cargill about $300 million at one time or another.\n<\/p>\n

\n However, as with the Ukrainian banks, Cargill stands to get repaid in the reorganization of the International Bank of Azerbaijan. The $715 million the company is owed is expected to be converted to debt directly backed by the government of Azerbaijan.\n<\/p>\n

\n \u201cWe haven\u2019t taken any material reserves and we expect to be fully repaid through the reorganization plan,\u201d Cargill said in a statement regarding the Azerbaijani bank.\n<\/p>\n

\n While agribusiness is its bread and butter, Cargill \u2014 the largest privately held U.S. company \u2014 has long had a financial services arm. Its \u201ctrade and structured finance\u201d group provides trade finance credit, including directly to banks, which then lend the money to firms involved in foreign trade and commodities.\n<\/p>\n

\n The International Bank of Azerbaijan owed Cargill $715 million in what appears to be short- to medium-trade financing loans when in mid-May it filed a Chapter 15 proceeding in U.S. Bankruptcy Court for the Southern District of New York.\n<\/p>\n

\n Under Chapter 15, the Azerbaijani bank is shielded from U.S. lawsuits while it reorganizes in its home country \u2014 and Cargill was threatening to sue, the bank said in a court filing.\n<\/p>\n

\n When the troubled bank started reorganizing in Azerbaijan, it triggered a default on its Cargill debt and other credits. Cargill had \u201creiterated a willingness to accelerate the debt and\/or bring legal action against [the International Bank of Azerbaijan] in the United States,\u201d according to a bankruptcy court filing.\n<\/p>\n

\n Cargill\u2019s loans to the Azerbaijan bank comprise 22 percent of the $3.3 billion in debt that the institution is working to refinance.\n<\/p>\n

\n The bank said last month that creditors holding over 90 percent of its debts have approved its reorganization plan. Cargill confirmed it favors the plan. The bank\u2019s restructuring plan could receive court approval as early as Aug. 15.\n<\/p>\n

\n The International Bank of Azerbaijan has seen trouble for the past few years, hurt among other things by the depressed price of oil, a pillar of Azerbaijan\u2019s economy. With its loan portfolio decaying and the continued devaluation of the Azerbaijani currency \u2014 the manat \u2014 the bank lost more than $1 billion in 2016.\n<\/p>\n

\n
\n \u2018Internal control\u2019 issues
\n <\/b>\n<\/p>\n

\n The economy wasn\u2019t its only problem. The bank, owner of a 39 percent share of Azerbaijan\u2019s banking market, had \u201cinternal control weaknesses,\u201d according to bankruptcy documents filed by the bank. Some of its customers \u201cmay not have been properly identified as related parties.\u201d\n<\/p>\n

\n Indeed, the entire Azerbaijani banking systems is \u201chighly concentrated and underdeveloped, with weak governance and underwriting standards,\u201d bankruptcy documents say. The International Bank of Azerbaijan\u2019s CEO resigned in 2015 amid poor results and was later convicted of embezzlement.\n<\/p>\n

\n As conditions worsened for the bank, the Azerbaijani government injected capital into it, increasing state ownership from about 50 percent in 2015 to 95 percent currently.\n<\/p>\n

\n Cargill was one of nine providers of trade finance credit to the International Bank of Azerbaijan; the rest are banks, mostly based in Europe.\n<\/p>\n

\n Structured trade finance is a niche market dominated by international banks and global trading companies like Cargill. Cargill, which had $2.8 billion in profits and more than $110 billion in sales during its most recent fiscal year, has been in the structured finance business since 1993.\n<\/p>\n

\n \u201cCargill\u2019s structured financings to banks are designed for such funds to be lent by the bank to named corporate customers of the bank who are active in commodity markets,\u201d the company said in a statement. The credit terms for Cargill\u2019s loans are usually one to three years.\n<\/p>\n

\n Cargill said its \u201cexposure\u201d on structured finance loans is often \u201conly a small percentage of the nominal amounts that are publicly profiled.\u201d Trade finance lenders like Cargill can mitigate their risk by among other things, selling portions of the loans they make, or by using credit insurance.\n<\/p>\n

\n Cargill declined to comment on details of the $715 million Azerbaijani bank credit, and declined to make an executive available for an interview.<\/p>\n","protected":false},"excerpt":{"rendered":"

US agricultural giant’s loans to Azerbaijan are latest headache for its finance arm.<\/p>\n","protected":false},"author":11,"featured_media":87374,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[37],"tags":[],"class_list":["post-185947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","infinite-scroll-item","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"acf":[],"yoast_head":"\nCargill owed $715 million by bankrupt Azerbaijani bank - MEYDAN.TV<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cargill owed $715 million by bankrupt Azerbaijani bank - MEYDAN.TV\" \/>\n<meta property=\"og:description\" content=\"US agricultural giant's loans to Azerbaijan are latest headache for its finance arm.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/\" \/>\n<meta property=\"og:site_name\" content=\"MEYDAN.TV\" \/>\n<meta property=\"article:published_time\" content=\"2017-08-07T16:05:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-29T10:25:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.meydan.tv\/wp-content\/uploads\/34653.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"647\" \/>\n\t<meta property=\"og:image:height\" content=\"370\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"user-manager\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/\"},\"author\":{\"name\":\"user-manager\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#\\\/schema\\\/person\\\/10d11eccf6da3662cf5fdab9806ea91a\"},\"headline\":\"Cargill owed $715 million by bankrupt Azerbaijani bank\",\"datePublished\":\"2017-08-07T16:05:34+00:00\",\"dateModified\":\"2021-10-29T10:25:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/\"},\"wordCount\":744,\"publisher\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.meydan.tv\\\/wp-content\\\/uploads\\\/34653.jpg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/\",\"url\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/\",\"name\":\"Cargill owed $715 million by bankrupt Azerbaijani bank - MEYDAN.TV\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.meydan.tv\\\/wp-content\\\/uploads\\\/34653.jpg\",\"datePublished\":\"2017-08-07T16:05:34+00:00\",\"dateModified\":\"2021-10-29T10:25:54+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.meydan.tv\\\/wp-content\\\/uploads\\\/34653.jpg\",\"contentUrl\":\"https:\\\/\\\/www.meydan.tv\\\/wp-content\\\/uploads\\\/34653.jpg\",\"width\":647,\"height\":370,\"caption\":\"International Bank of Azerbaijan\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/article\\\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u0413\u043b\u0430\u0432\u043d\u0430\u044f\",\"item\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"News\",\"item\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/section\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Cargill owed $715 million by bankrupt Azerbaijani bank\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/\",\"name\":\"MEYDAN.TV\",\"description\":\"Meydan TV Az\u0259rbaycan\u0131n media m\u0259kan\u0131ndak\u0131 alternativ s\u0259sidir\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#organization\",\"name\":\"Meydan TV\",\"url\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.meydan.tv\\\/wp-content\\\/uploads\\\/2021\\\/07\\\/meydan-logo.svg\",\"contentUrl\":\"https:\\\/\\\/www.meydan.tv\\\/wp-content\\\/uploads\\\/2021\\\/07\\\/meydan-logo.svg\",\"width\":195,\"height\":46,\"caption\":\"Meydan TV\"},\"image\":{\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.meydan.tv\\\/en\\\/#\\\/schema\\\/person\\\/10d11eccf6da3662cf5fdab9806ea91a\",\"name\":\"user-manager\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Cargill owed $715 million by bankrupt Azerbaijani bank - MEYDAN.TV","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/","og_locale":"en_US","og_type":"article","og_title":"Cargill owed $715 million by bankrupt Azerbaijani bank - MEYDAN.TV","og_description":"US agricultural giant's loans to Azerbaijan are latest headache for its finance arm.","og_url":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/","og_site_name":"MEYDAN.TV","article_published_time":"2017-08-07T16:05:34+00:00","article_modified_time":"2021-10-29T10:25:54+00:00","og_image":[{"width":647,"height":370,"url":"https:\/\/www.meydan.tv\/wp-content\/uploads\/34653.jpg","type":"image\/jpeg"}],"author":"user-manager","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#article","isPartOf":{"@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/"},"author":{"name":"user-manager","@id":"https:\/\/www.meydan.tv\/en\/#\/schema\/person\/10d11eccf6da3662cf5fdab9806ea91a"},"headline":"Cargill owed $715 million by bankrupt Azerbaijani bank","datePublished":"2017-08-07T16:05:34+00:00","dateModified":"2021-10-29T10:25:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/"},"wordCount":744,"publisher":{"@id":"https:\/\/www.meydan.tv\/en\/#organization"},"image":{"@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#primaryimage"},"thumbnailUrl":"https:\/\/www.meydan.tv\/wp-content\/uploads\/34653.jpg","articleSection":["News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/","url":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/","name":"Cargill owed $715 million by bankrupt Azerbaijani bank - MEYDAN.TV","isPartOf":{"@id":"https:\/\/www.meydan.tv\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#primaryimage"},"image":{"@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#primaryimage"},"thumbnailUrl":"https:\/\/www.meydan.tv\/wp-content\/uploads\/34653.jpg","datePublished":"2017-08-07T16:05:34+00:00","dateModified":"2021-10-29T10:25:54+00:00","breadcrumb":{"@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#primaryimage","url":"https:\/\/www.meydan.tv\/wp-content\/uploads\/34653.jpg","contentUrl":"https:\/\/www.meydan.tv\/wp-content\/uploads\/34653.jpg","width":647,"height":370,"caption":"International Bank of Azerbaijan"},{"@type":"BreadcrumbList","@id":"https:\/\/www.meydan.tv\/en\/article\/cargill-owed-715-million-by-bankrupt-azerbaijani-bank\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u0413\u043b\u0430\u0432\u043d\u0430\u044f","item":"https:\/\/www.meydan.tv\/en\/"},{"@type":"ListItem","position":2,"name":"News","item":"https:\/\/www.meydan.tv\/en\/section\/news\/"},{"@type":"ListItem","position":3,"name":"Cargill owed $715 million by bankrupt Azerbaijani bank"}]},{"@type":"WebSite","@id":"https:\/\/www.meydan.tv\/en\/#website","url":"https:\/\/www.meydan.tv\/en\/","name":"MEYDAN.TV","description":"Meydan TV Az\u0259rbaycan\u0131n media m\u0259kan\u0131ndak\u0131 alternativ s\u0259sidir","publisher":{"@id":"https:\/\/www.meydan.tv\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.meydan.tv\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.meydan.tv\/en\/#organization","name":"Meydan TV","url":"https:\/\/www.meydan.tv\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.meydan.tv\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.meydan.tv\/wp-content\/uploads\/2021\/07\/meydan-logo.svg","contentUrl":"https:\/\/www.meydan.tv\/wp-content\/uploads\/2021\/07\/meydan-logo.svg","width":195,"height":46,"caption":"Meydan TV"},"image":{"@id":"https:\/\/www.meydan.tv\/en\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.meydan.tv\/en\/#\/schema\/person\/10d11eccf6da3662cf5fdab9806ea91a","name":"user-manager"}]}},"_links":{"self":[{"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/posts\/185947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/comments?post=185947"}],"version-history":[{"count":1,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/posts\/185947\/revisions"}],"predecessor-version":[{"id":215576,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/posts\/185947\/revisions\/215576"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/media\/87374"}],"wp:attachment":[{"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/media?parent=185947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/categories?post=185947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.meydan.tv\/en\/wp-json\/wp\/v2\/tags?post=185947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}