Rusal extends forbearance period on syndicated loans until October 31
MOSCOW. July 2 (Interfax) - Russian aluminum company UC Rusal has frozen payments on syndicated loans of $4.75 billion and $400 million until October 31, 2014, the company said in a statement.
Rusal added that the forbearance included stopping all payments on existing loan agreements until new refinancing conditions enter into force. This could be prolonged until November 30, 2014.
The former system for freezing payments on the loans entered into force on April 8 and is set to expire on July 7.
It was reported that Rusal intends to reach agreements with all creditors to refinance syndicated loans. Rusal has said it planned to obtain a court ruling to secure the consent of all creditors to refinance the syndicated loans since two banks, which account for 6% of overall debt, refused to accept the new conditions of settlement - the Royal Bank of Scotland and Germany's Portigon. Portigon has, however, already agreed to refinance. This means that of the syndicate of 23 banks, just one has not confirmed the refinancing deal.
The hearings will take place on July 10 at the High Court in London and on July 15 in the Royal Court, Jersey.