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Update: Rusal seeks PXF covenant waivers
19 December 2011
More details have emerged on Russian aluminium producer Rusal’s continuing covenant waivers negotiations with lenders on its jumbo pre-export financing.
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Rusal
aluminium
pre-export financing
PXF
Sources have revealed that Russian aluminium producer Rusal is seeking to adapt the margin grid on its $4.75 billion pre-export financing (PXF) signed in September. Rusal confirmed last week that it had asked lenders to agree to covenant waivers on the deal but declined to provide additional details.
However, the producer denied a report issued in Russian business daily Vedomosti that claimed the company was seeking a twelve-month, interest-free grace period on its PXF because it would be unable to service its debt due to the falling price of aluminium.
The Russian firm instead stated that it wanted a “more flexible approach” to the calculation of its covenants and wanted to “introduce a period during which the covenants are not tested”. It claims not to have approached lenders asking to “skip” interest payments on its loans.
Trade Finance understands that the firm is actually looking to adapt the leverage...
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