Rusal Agrees Terms On Debt Restructuring

Russian aluminium producer, United Company Rusal, has agreed with representatives of foreign banks on the principal terms to extend repayments on $7.4bn of loans, including the pledge of stakes in its operating companies as collateral, according to the Wall Street Journal, citing people familiar with the situation. The debt will be repaid over seven years under the terms of the deal, and is still subject to credit-committee approval at the lending banks. Rusal, controlled by billionaire Oleg Deripaska, said an accord with Russian lenders is expected to be reached in the coming months, reports Bloomberg. “With costs having been aggressively reduced, Rusal looks in a lot better shape,” Rob Edwards, metals and mining managing director at Renaissance Capital, said in a Bloomberg report. “The real issue is when and how the high-cost portion of the debt portfolio owed to Russian stakeholders is dealt with.” Rusal, the world’s second largest aluminium producer, has been severely hit by declining metal prices amid the current crisis. source:www.financierworldwide.com