RusAl proposes to foreign banks moving debt payment ahead by 7 yrs

MOSCOW. April 23 (Interfax) - United Company Russian Aluminum (UCRusal) is proposing intensive negotiations with its foreign bankcreditor to restructure debt coming to $7.4 billion. A source in banking circles told Interfax that, among the variouspossible options for debt restructuring, a proposal from the Russiancompany is being consider in which the payment on main debt is movedahead by up to seven years from the expiry moment of an earliermoratorium agreement. An additional source said that UC Rusal isproposing a reschedule of its debt payments by up to seven to ten years. However, western creditors are interested in a shorter term ofpayment and support RusAl moving its payment term ahead by up to twoyears. The source said that this issue is one of the main points ofdiscussion at present. RusAl told Interfax that it was in discussion with banks concerningthe terms for its long-term debt structure. However, the company saidthat it was too soon to provide any further details on this issue. It was earlier reported that Rusal had plans to put off the paymentof its man debt to foreign banks by up to two years from the from theexpiry moment of a moratorium agreement that has been signed by morethan 90% of creditors, which took effect on March 11. Rusal has put offthe payment of principle debt slated for the next three months. UC Rusal's total debt comes to $16.8 billion. The company's main Russian creditors are Gazprombank, Sberbank(RTS: SBER) and VTB (RTS: VTBR). The aluminum giant's individual debt toeach of these banks comes to $600 million-$700 million. In addition, thecompany owes Alfa-Bank (RTS: ALFB) around $90 million. However, Alfa-Bank has proved to be one of the more difficultcreditors for the company and has held the sternest position out of allthe banks. Alfa-Bank has pursued a return on the debt owed throughcourt.