Russia's Alfa Bank opposes GAZ debt plan -paper
MOSCOW, July 13 (Reuters) - Russian carmaker GAZ has agreed the restructuring of 40 billion roubles ($1.25 billion) of debt with most creditors, but Alfa Bank is unhappy with the terms and could jeopardise the deal, Vedomosti reported on Monday. GAZ hopes to sign the agreements by Aug. 1, Valeri Lukin, managing director of 60 percent shareholder Russian Machines, told the business daily.
The agreement with all 18 creditors is needed but Alfa Bank, Russia's largest privately owned lender, does not want to sign.
"We think that the business model presented by the management of GAZ is ineffective," a bank representative told Vedomosti.
"A postponement for five years may be acceptable for foreign or state banks, but we cannot risk our clients' money."
Russian carmakers have been hard hit as people tighten their belts in the face of the first recession in a decade, while banks remain reluctant to hand out loans to companies and individuals alike. Car sales slumped 56 percent in May.
GAZ, controlled by indebted Russian tycoon Oleg Deripaska through Russian Machines, has secured state guarantees worth 20 billion roubles for its loans [ID:nL765345] The money will be used as collateral for half the planned debt restructuring.
Alfa Bank, controlled by billionaire Mikhail Fridman, has already filed a bankruptcy suit against Deripaska's building firm. [ID:nLU325052] It is not known how much GAZ owes to Alfa, but the bank has said Deripaska's firms owe it $1 billion. ($1=32.03 roubles) (Writing by Toni Vorobyova; Editing by Mike Nesbit)
