The FINANCIAL — According to RIA Novosti, RusAl, the world's one of the largest aluminum producers, and Onexim Group controlled by Russian billionaire Mikhail Prokhorov, announced on March 22 that they had reached an agreement on restructuring RusAl's $2.8 bln debt.
In accordance with the deal, the $2 billion debt will be converted into RusAl shares.
"Onexim's stake in RusAl will consequently increase to 18.5%. The stakes of other shareholders will change accordingly, with En+ holding 53.8%, shareholders of SUAL Group 18% and Glencore 9.7%," the companies said in a statement.
The remaining $800 mln debt to Onexim will be restructured, with RusAl intending to agree the terms of this reschedule with the rest of its lenders in the near future, the statement said.
"As part of today's agreement, Onexim has agreed not to exercise its put option on any of its shares in RusAl during the period of the standstill agreement signed with the international lending banks as well as to facilitate RusAl's further debt restructuring," the statement said.
UC RusAl was established in March 2007 through a merger of Russian aluminum giants RusAl and SUAL and Swiss Glencore's alumina assets.
UC RusAl accounts for approximately 12% and 15% of global production of aluminum and alumina respectively. The company sells its products in 70 countries worldwide and employs 90,000 people in 19 countries.