(Adds details, context)
MOSCOW, April 2 Russia's aluminium giant Rusal
is still in talks with lenders to amend the terms of syndicated
facilities covering $3.7 billion of debt to defer repayments and
modify covenants, which are due to be tested in May, it said.
The company is also continuing talks with lenders to agree
certain forbearances and to agree not to exercise their rights
in the case of a covenants breach effective until July 7, Rusal
said in an emailed comment to Reuters on Wednesday.
Rusal, the world's largest aluminium producer with a net
debt of $10.1 billion, has been hit by low aluminium prices and
reported its biggest annual loss since 2008 last week. The
company remains loss-making for the second year in a row.
Rusal failed to negotiate a deal for its $3.7-billion
syndicated facilities before March 31, when the financial
covenants were due to be tested and could have resulted in a
breach of certain existing financial covenants, the company said
On Wednesday, it said these covenants had not been tested so
far and would be tested in May, when the company is due to file
its financial report for the first quarter, 2013.
The $3.7 billion of syndicated pre-export facilities (PXF)
includes loans of about $1 billion from Russian lenders with the
rest from international creditors.
The firm has received approval from the majority of lenders
to amend the terms.
The company is due to make a regular repayment of $200
million under the PXF in April, the Kommersant newspaper
reported on March 27, citing unnamed sources.
Rusal declined to comment on whether that report was true
and whether the company was aiming to reach the restructuring
deal and the forbearance agreement with lenders before the
reported repayment in April.
(Reporting by Polina Devitt, editing by Elizabeth Piper)