(Adds details, background)
HONG KONG, May 12 (Reuters) - Aluminium giant United Company
Rusal Plc said it expects to reach an agreement with
lenders soon to revise the terms of its $3.6 billion syndicated
debt, as it struggles to repay its loans amid depressed
The loss-making company also called on major producers,
including in China, to cut aluminium output to aid a recovery in
The world's biggest aluminium producer won a deal with
lenders in April to defer the repayment dates of syndicated
facilities by three months until July 7.
"We are currently finalising the terms with the remaining
banks and we hope to close the deal in the next couple of
months," Deputy CEO Oleg Mukhamedshin told reporters in Hong
Kong, where the company has its primary listing, after its
Rusal, which in March reported its second annual loss in a
row, has cut production and is working with lenders to delay
loan repayment dates in an effort to meet loan repayments.
Rusal had net debt of $10.1 billion as of the end of last
year. It repaid some bondholders in March and has reached an
agreement with Russian lenders including Sberbank, VTB
and Gazprombank, to refinance about 70 percent of the
amount, Mukhamedshin said.
Completion of refinancing will allow Rusal to maintain a
sustainable cash position in anticipation of market rebound, the
firm said in March.
Shares in Rusal slipped 0.6 percent in Hong Kong trading by
0412 GMT, lagging a 1.7 percent gain in the benchmark Hang Seng
Rusal said global aluminium prices remain under pressure and
urged big produrcers to cut output until prices recover.
Rising capacity at aluminium plants in China, which account
for almost half of world output, has led to a global oversupply
and weighed down prices.
"We believe that the key strategy for aluminum is to be very
cautious on supply, and I think this equation and lesson should
be taken by mainland producers because what they suffer now -
this dramatic fall in prices - reflects the supply inside
China," CEO Oleg Deripaska said, adding that Rusal's 2014
aluminium exports will fall from last year.
Rusal also reiterated support for CME Group Inc's
new aluminum contract, adding that the company will use it as a
CME launched a North American aluminum-futures contract this
month, returning to the market after a four-year absence and
ramping up competition with the London Metal Exchange.
(Reporting by Clare Baldwin; Writing by Fayen Wong; Editing by