Rusal: Lenders vote on combining facilities proposed for Sept. 8

By Toni Weeks

San Luis Obispo, Calif., July 15 – United Co. Rusal plc has proposed to schedule a meeting of its lenders on Sept. 8 to vote on a scheme of arrangement, which would combine its $4.75 billion and $400 million pre-export finance facilities into a single facility, according to a company news release.

As previously reported, the company’s application for the scheme of arrangement was heard by the High Court of Justice in London on July 10, and the court authorized the convening of the lender meeting. The company asked for similar authorization from the Royal Court of Jersey on July 15, and that authorization was given as well.

The scheme of arrangement would require the support of at least 75% by value and a majority in number of the lenders.

As already noted, 94% of the lenders by value have entered into a lock-up agreement under which they will vote in favor of the scheme of arrangement.

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 was originally scheduled to end July 7. On July 2, it was extended to the earlier of (a) Oct. 31 or such later date as might be agreed, provided that the date is not later than Nov. 30, and (b) the date on which the combination of the finance facilities becomes effective.

Rusal is an aluminum company based in Moscow.

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