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6 Mar, 2009 13:07

Rusal reaches short term deal with creditors

Rusal reaches short term deal with creditors

Russia’s largest aluminium producer, Rusal, has signed a standstill agreement with international lenders relating to the restructuring of its debts, gaining at least 2 months for the debt burdened company.

With Rusal currently facing the need to manage $14 billion in debts, including $7.4 billion to international banks, the agreement will operate for 2 months with the possibility of a further month’s extension. It covers more than 30 transactions involving more than 70 banks. The agreement has the support of Russian lenders and the majority of their international counterparts.

With Rusal currently a comprehensive cost cutting and production optimisation programme CEO, Oleg Deripaska says the agreement highlights the support for the company from its creditors, after Rusal initiated discussions with creditors in December.

“We are pleased that our lenders have endorsed our pro-active steps to address the exceptional trading conditions and the current global economic crisis. The agreement highlights the long-term support that exists for RUSAL amongst the international banks and the Russian financial community and demonstrates the constructive nature of the ongoing negotiations between RUSAL and its lenders,”