United Co. Rusal (486), the world’s largest aluminum producer, said it wants to complete negotiations within two months with lenders for a “more flexible approach” to covenants given the prospect of “continuing weakness” in commodity markets next year.
The company is confident that lenders will meet its requirements, Chief Executive Officer Oleg Deripaska said in a Bloomberg TV interview.
Rusal also requested from its lenders a period in which its covenants aren’t tested, it said in a statement yesterday.
Rusal undertook a $17 billion debt restructuring in 2009 as the global crash in commodity prices coincided with increased borrowing to finance Rusal’s expansion. Aluminum prices have slumped 29 percent from this year’s peak of $2,797 a ton on May 3.
To contact the reporter on this story: Firat Kayakiran in London at email@example.com
To contact the editor responsible for this story: John Viljoen at firstname.lastname@example.org