Russian aluminum giant RusAl rejected media reports on Thursday that it intended to ask its creditors to allow it to skip interest payments on its loans next year.
“RusAl officially states that the company has never approached its lenders to allow it to skip interest payments on loans,” RusAl said in a statement.
Russian business daily Vedomosti reported on Thursday that RusAl had asked creditors for a twelve-month grace period on its loans next year, saying the company might be unable to service its debt, if world aluminum prices continued falling.
Vedomosti quoted Metropol investment company analyst Sergei Filchenkov as saying that RusAl has to pay around $980 million in interest in 2012 and the company may face difficulties next year as world aluminum prices have plunged by 28 percent from this year's record high on May 3 to $1,974 per ton, almost to the level of the company's production cost.
