RUSAL may pay LIBOR +6/+7 pct on restructured debt

MOSCOW, June 17 (Reuters) - Aluminium giant UC RUSAL could pay 6 or 7 percent over LIBOR on $7.3 billion of its foreign loans under the terms of a landmark restructuring deal currently being negotiated, Vedomosti newspaper reported on Wednesday. The RUSAL restructuring talks -- expected to set a benchmark for dozens of restructurings under negotiation in Russia -- are seen as essential to Russia's ability to manage its $453 billion foreign debt and creditors' willingness to shoulder Russia risk. The rate will be tied to improvements in RUSAL's debt/EBITDA ratio and could fall as low as LIBOR plus 3 percent if RUSAL, controlled by businessman Oleg Deripaska, succeeds with cost cuts and debt reduction, the paper said, citing investment bankers. RUSAL declined to comment on the report. Last week, RUSAL said the club of 70 international banks has agreed to reset the clock on debt talks giving the world's largest aluminium producer until July 28 to restructure $7.3 billion in foreign loans