1 Mar 2010 18:38

CORRECTED: GAZ auto group renegotiates over 39 bln rubles debt

(last paragraph adjusted)

MOSCOW. March 1 (Interfax) - Russia's GAZ automobile group has reached agreement with a syndicate of banks to restructure 39.257 billion rubles in debts, the company's general director, Valery Lukin, told a press conference in Moscow.

Eleonora Bosova, chief legal officer at GAZ shareholder Russian Machines, said Sberbank , which was acting on behalf of 22 Russian and foreign lenders, would hold 16.2% of GAZ shares as security.

Bosova also said a Sberbank representative would be nominated for election to the board of nine directors at GAZ.

Alexander Bazarov, vice president of Sberbank, said a syndicated loan to GAZ would be repayable at the refinancing rate plus 4 percentage points.