RUSAL targets deal with creditors by end May, IPO in 3-4 yrs

MOSCOW. May 19 (Interfax) - Oleg Deripaska's United Company RUSAL(UC RUSAL) aims to reach a deal with its Russian and foreign creditorsby the end of May and will hold an IPO in three or four years, ArtemVolynets, the aluminum giant's strategy and development manager, toldreporters. "There's some very good progress in dialog with creditors" and thecompany plans to reach deals with Russian and foreign banks, includingVEB, by the end of May, Volynets said. "We're working on the latest terms for agreements with thecommittee of creditors. We've no doubt that the creditors will back us,"he said. RUSAL has not shelved plans to hold an IPO, Volynets said. "RUSAL will hold an IPO in three or four years and foreigners are bound toappear among our shareholders," he said. Volynets also said RUSAL was now breaking even. The company alsoaims to cut production costs to $1,000 per tonne of aluminum by thefourth quarter. Those costs have already been reduced to $1,300 a tonne,Volynets said. RUSAL plans to reschedule its debt and to balance its assetportfolio before the first half of 2009 is out. The company isapproximately $17 billion in debt and borrowed $4.5 billion from RussianBank for Development and Foreign Economic Affairs (Vnesheconombank, VEB)with 25% of the shares in MMC Norilsk Nickel (RTS: GMKN) as securitylast autumn in order to refinance foreign debt. The company's cost-cutting and production optimization programshould save an additional $1.3 billion.