RLPC-RUSAL lenders to vote on debt restructuring Weds-banker

LONDON/MOSCOW, July 27 (Reuters) - Lenders to Russia's RUSAL, the world's largest aluminium producer, will vote on Wednesday on an outline of the terms for restructuring RUSAL's $7.3 billion in debt, a senior banker close to the talks said on Monday. Lenders will also make a decision over extending the current standstill agreement from July 28 to September to allow time for documentation to be finalised, bankers added. Last week, three sources close to the deal told Reuters RUSAL may need to extend the standstill agreement to resolve unspecified bureaucratic matters. [ID:LN457738] The banks in the coordinating committee leading the restructuring talks have agreed the terms of the restructuring in principle and they will be put forward to the rest of the lenders on Wednesday. The highlights were discussed by all the banks on a conference call on Friday, they added. In all, there are more than 70 international banks involved in the negotiations. The proposed terms of the restructuring include extending the debt over a period of seven years -- a four-year extension with a three-year refinancing to follow at maturity. "It's a four-year extension with significant additional security over both fixed and current assets ... which increases with aluminium price recovery," the senior banker involved in the talks said. In addition, the banks and RUSAL are also expected to agree by the September deadline a three-year refinancing for when the four-year term expires, the source said. "This mechanism allows the company to say it has put its finances onto a medium-term footing, with worst case scenario financing terms laid out for the next seven years, while lenders can...say they are only legally committed to four years," the senior banker added. (Reporting by Christopher Mangham and Melissa Akin in Moscow; Editing by Rupert Winchester)