According to company's representatives, the world’ s largest aluminum company has made payments to privately-owned Alfa Bank from its own cash resources which outraged a group of more than 70 creditors, working to restructure $7.3 billion of RusAl’ s foreign debt.
RusAl’ s total debt to banks is about $16 billion.
It was not clear when the Sberbank loan was offered. Sources said RusAl had been assured of the loan but that it may yet require approval from the state bank’ s credit committee, one source said, according to the Moscow Times.
When the restructuring talks began, the standstill agreement bore a condition precedent that Sberbank would assume RusAl’ s debt to Alfa, banking sources have said.
The plan broke down, however, when Sberbank said it could not take on any more exposure to RusAl without breaking through risk controls, after which the restructuring talks with foreign creditors proceeded under the shadow of Alfa’ s demands.
The loan, expected to at least cover the $89.5 million repaid to Alfa, emerged around the time of a renewed plan to sell RusAl shares on the Hong Kong stock exchange, shelved last year when the financial crisis savaged metals prices.
A recent bump in aluminum prices meant RusAl’ s ability to repay Alfa was not in doubt.
Creditors are concerned, however, about long-term prices for the metal while global demand struggles and the long line of lenders are waiting for a share of RusAl’ s uncertain cash flows.
