Rusal Seeks Court Approval of Debt Plan After Lender Backing - Bloomberg

Rusal Seeks Court Approval of Debt Plan After Lender Backing - Bloomberg:



"United Co. Rusal will apply for court backing for a restructuring of two loans, for $4.75 billion and $400 million, after winning support for its plans from the majority of creditors.



Rusal, the world’s biggest aluminum producer, will seek approval from courts in England and Jersey to pursue the plan, supported by 94 percent of its lenders, the Moscow-based company said. The so-called scheme of arrangement can be used when at least 75 percent of creditors by value approve of restructuring, Rusal said. 




To allow extra time for negotiations with the 6 percent of holdout creditors, or until the courts make a ruling, a majority of the lenders said they will defer demands for repayment until the end of October, Rusal said. The original debt waiver accord was due to expire on July 7."



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