Alfa Bank, the country’s biggest private lender, on Friday agreed to debt restructuring terms for some of Oleg Deripaska’s companies, but talks are continuing on United Company RusAl’s obligations, said Vladimir Tatarchuk, the bank’s head of corporate finance.
The bank’s internal credit committee has also approved new debt terms for the Krasnoyarsk hydropower plant, part of Deripaska’s EuroSibEnergo utility, and expects to do the same soon for the billionaire’s paper and pulp business, Tatarchuk told reporters.
Alfa Bank expects to sell its share of debt owed by Deripaska’s Russian Machines unit within one month to another creditor, Tatarchuk said. Another bank will refinance the debt of construction company Glavmostroi, he said.
“We have agreements for several of the companies” owned by Deripaska’s Basic Element holding company, he said. “Unfortunately, we don’t have an accord that would regulate all debts of Basic Element.”
Opposition from Alfa has delayed debt restructuring at a number of Basic Element assets, including talks over the $14 billion that aluminum producer RusAl owes to foreign and Russian banks. Alfa is also in talks to potentially buy Basic Element debt held by other creditors to bolster its bargaining position, Tatarchuk said.
Alfa wants RusAl to pay interest due on debts that have already cleared and is ready to go to court over the issue, he said.
RusAl said in a statement that it would pay any outstanding liabilities once their size has been determined.
Last month, debt-laden RusAl said it repaid $85.9 million to Alfa Bank after the private lender threatened to pursue the bankruptcy of two RusAl units.
Tatarchuk said RusAl had paid all of the original debt and some of the interest on it, but had not paid the penalties and fines that had accumulated.
“We plan to get all the interest that was not paid by RusAl,” he said. “If we do not manage to agree with RusAl’s units, then we do not exclude filing a law suit.”
RusAl said in an e-mailed statement that it would meet its obligations.
“RusAl has always fulfilled, is fulfilling and will fulfill its obligations relating to the credit agreement with Alfa Bank,” the statement said. “We have never refused to pay the penalties … and intend to pay them once the size has been determined — either through a peaceful agreement or by a court decision.”
Basic Element companies are restructuring more than $20 billion in debt after commodity prices and demand collapsed last year along with the ruble. About one in every 100 Russians is economically reliant on Deripaska’s companies, according to data compiled by Bloomberg.
“We believe that the function of a bank, especially one that receives state financing, is to lend to industry and not to buy more debt of its debtors to increase pressure on them and get more favorable terms,” Basic Element said in an e-mailed statement Friday.
(Bloomberg, Reuters)
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