Russia's Rusal expects lenders to agree to extend forbearance period

By Angela McDaniels

Tacoma, Wash., June 26 – United Co. Rusal plc expects to be able to extend the forbearance received from the lenders under its $4.75 billion and $400 million pre-export finance facilities, according to a company news release.

In April, a majority of the lenders agreed to forbear from exercising any rights they may have as a result of certain defaults to, among other things, accelerate the facilities or take any steps to begin any insolvency proceedings against the company. The forbearance period ends July 7.

The company is seeking a lock-up agreement that would continue the forbearance period. As of June 26, enough lenders have given notice of credit approval for the company to expect that the new forbearance period will take effect by July 1.

In addition, the company wants to combine the two pre-export finance facilities into a single facility.

So far, 94% of the lenders have expressed support for the combination. The company said it continues to seek the support of the remaining lenders and in the meantime will apply to make the combination through a scheme of arrangement, which would require the support of at least 75% by value and a majority in number of the lenders.

The company expects its application for the scheme of arrangement to be heard by the High Court of Justice in London on July 10 and by the Royal Court of Jersey on July 15.

Rusal is an aluminum company based in Moscow.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.