RLPC-UPDATE 1-RUSAL set for more debt talks with banks-sources

* Debt standstill agreement to be extended by lenders * Restructuring talks set for another 2-4 months * Bankers optimistic that restructuring will be passed (Adds details) By Christopher Mangham and Melissa Akin LONDON/MOSCOW, Sept 15 (Reuters) - Russian aluminium firm UC RUSAL's deadline to restructure $7.3 billion of foreign debt, which expires on Friday, will be extended by the banks to finalise documentation, senior bankers said. The debt standstill agreement is expected to be extended by 2-4 months, the sources told Reuters. Russian magnate Oleg Deripaska's RUSAL and the coordinating committee representing the company's banks presented the restructuring proposal to 70 international lenders at the end of July, setting a Sept. 18 deadline for agreement. The senior bankers remain optimistic that the restructuring proposal will be passed. "As I understand it is a question of documentation work, which appears to require more time than was expected," one of the bankers said. The extra time will allow the banks to document the draft term sheet agreed by the coordinating committee into an 'override' agreement between all western banks and RUSAL, two bankers said. "(The override) says in return for extending maturities by 4 years, banks get improved economics...a substantial additional raft of security is added, plus we get various lines in the sand requiring debt reduction," a second banker said. RUSAL was not immediately reachable for comment. RUSAL announced in July the key terms of a deal to restructure the foreign debt, subject to credit committee approval by the lenders. The company said it would pay all creditors $5 billion of its total $16.8 billion in debt by the end of the fourth quarter of 2013. Interest would be paid partly in cash at rates ranging from 1.75 to 3.5 basis points over LIBOR. The rest of the interest would be capitalised, it said. [ID:nLU7901] (Additional reporting by Polina Devitt and Oksana Kobzeva in Moscow; Editing by David Cowell)