Rusal's Lenders Ask For Explanation On Boguchansk - Sources
June 10 2009 - 3:40PM
Dow Jones News
Lenders to Russian aluminum giant United Company Rusal, which is
in talks to restructure its multibillion-dollar debt, have
requested the company's clarification on how it will be able to
finance its part of an ambitious Siberian project and repay its
part of the loan associated with it, people familiar with the
matter told Dow Jones Newswires Wednesday.
Barclays Bank PLC (BARC.LN), acting as the facility agent, sent
a letter to Rusal, in which it asks the company to explain how it
will be able to meet its financing obligation in respect to the
Boguchansk Energy and Metals Complex, or BEMO.
Rusal and state-controlled hydropower monopoly RusHydro
(HYDR.RS) are building the 3,000-megawatt plant, which is to feed
the Boguchansk aluminum smelter, also jointly built by Rusal and
RusHydro.
The banks, including Barclays Capital, Calyon, ABN Amro Bank and
Russia's Sberbank (SBER.RS), have lent $520 million to the BEMO
partners as a bridge loan.
In its letter, Barclays asked Rusal how it will be in a position
to repay its 50% share of the loan on the maturity date in early
2010.
The letter also asks Rusal to give its rationale for the
continuation of the project, given Rusal's production cuts and its
previous statements that the smelter launch had been indefinitely
suspended.
-By Alexander Kolyandr, Dow Jones Newswires; +44 20 7842 9410;
alexander.kolyandr@dowjones.com