UPDATE 1-RUSAL says creditors extend standstill to July 28

MOSCOW, June 10 (Reuters) - Russia's UC RUSAL has reached an agreement with a club of 70 foreign creditors to extend a standstill agreement on $7.3 billion in loans until July 28, UC RUSAL said on Wednesday, a day before the current standstill ends. "After completion of negotiations with RUSAL, the banks will need to have the termsheet approved by their credit committees. Taking into account the number of banks involved in the restructuring, this procedure will take about a month," UC RUSAL spokeswoman Vera Kurochkina said in an emailed comment. "Therefore the banks intend to prolong the current standstill until 28 July." RUSAL said that the creditors' club had been waiting for state bank VEB's decision on whether to prolong a $4.5 billion one-year loan granted to RUSAL in October last year. It said negotiations were continuing with the creditors' club in Moscow. Last month RUSAL said that it expected to secure an extra seven to eight years to repay the $7.3 billion debt to international banks with a certain grace period it believed could be two years. It said it would not surrender a stake in the company as payment. [ID:nLE093041] Earlier this month banking sources told Reuters VEB had extended its loans to some firms including RUSAL to allow them to focus on refinancing foreign debt. [ID:nL21022744]