United Co. RUSAL Plc (00486.HK) has reached a deal with creditors to refinance 70 percent of its debts, the Hong Kong Economic Journal reported Tuesday, citing RUSAL deputy chief executive Oleg Mukhamedshin.
The alumina maker will soon make arrangements with lenders over the remaining debt.
The loss-making group had accrued US$10.1 billion in net liabilities as of the end of last year. After repaying some of the total in March, the group gained support from Sberbank Rossii, VTB Bank OJSC and Gazprombank Group, among other creditors, to refinance 70 percent of its obligations.
The group has also cut its capacity since last year, partly by suspending the operations of some aluminum refineries, with a view to clearing backlogs, Mukhamedshin said.
The level of supply is key to the metal’s price, Mukhamedshin said, adding that Chinese producers should also learn a lesson from a recent plunge in prices due to excess output.
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