Billionaire Deripaska's Rusal gets loan extension

MOSCOW -- Aluminum producer Rusal, owned by billionaire Oleg Deripaska, said Wednesday it has secured an extension until July 28 on a standstill agreement on $7.4 billion owed to foreign creditors. The agreement gives Rusal some breathing space in its efforts to restructure nearly $14 billion in debt, just over half of which is owed to a group of foreign banks. The previous standstill - which freezes principal payments while a restructuring deal is negotiated - was due to expire on June 11. Rusal has been locked in tough negotiations with foreign banks since December. Rusal said it would take the extra month for foreign banks' credit committees to approve the terms. More than 70 banks are involved in the deal. Rusal said lenders had been waiting to hear if state-owned Vnesheconombank would extend a $4.5 billion loan it gave to the company last year. Deripaska, Russia's richest man until last year, is estimated by Forbes magazine to have shed some $24 billion of his fortune after the global financial crisis revealed the extent of his debt. Tumbling stock markets compelled him to cede stakes to creditors in several overseas companies, while at home his business empire - which ranges from cars to metals to construction - struggles under the huge debt burden. He also owns British vanmaker LDV, which went into administration this week. Under pressure from creditors to cut costs, Rusal is seeking to save up to $1.1 billion this year through cost-saving measures