Ashurst and Hogan instructed on steel giant's $2.8bn restructuring
Ashurst and Hogan & Hartson have secured major roles on a $2.8bn (£1.9bn) Russian debt restructuring for embattled steel giant Rusal.The high-stakes deal saw Rusal offer an enlarged stake in its business to Onexim Group in exchange for $2bn (£1.37bn) of debt owed to the latter company. The restructuring, which raises Onexim's stake in Rusal by 4.5% to 18.5%, leaves a remaining $800m (£549m) in debt to be restructured later on.
April 01, 2009 at 11:18 PM
2 minute read
Rusal calls in Ashurst on high-stakes £2.8bn debt restructuring
Ashurst and Hogan & Hartson have secured major roles on a $2.8bn (£1.9bn) Russian debt restructuring for embattled steel giant Rusal.
The high-stakes deal saw Rusal offer an enlarged stake in its business to Onexim Group in exchange for $2bn (£1.37bn) of debt owed to the latter company. The restructuring, which raises Onexim's stake in Rusal by 4.5% to 18.5%, leaves a remaining $800m (£549m) in debt to be restructured later on.
Ashurst acted for Rusal fielding a team led by corporate partner Andrew Edge along with senior partner Charlie Geffen and corporate partners Gavin Gordon and David Kershaw.
Rusal instructed its traditional Russian counsel Egorov Puginsky Afanasiev & Partners to handle local law issues.
Hogan & Hartson was instructed by Onexim, owned by Mikhail Prokhorov – the richest man in Russia according to Forbes – with London-based corporate partner Todd Schafer leading the team alongside corporate partners Chris Melville and Peter Kohl.
The deal will relieve some of the pressure on the embattled Russian company, owned by high-profile Russian oligarch Oleg Deripaska. Rusal – the world's largest aluminium producer – is currently battling to restructure a remaining $14bn (£9.6bn) in debt owed to foreign creditors and
Russian banks.
The mandate also underlines Rusal's ongoing importance to Ashurst as a client, with the Russian company instructing the City law firm on a string of major deals in recent years.
Edge commented: "We have been working closely with Rusal since helping them on the merger, which created UC Rusal in 2006-07 and again on their acquisition of 25% of Norilsk Nickel last year. This latest deal is just as pivotal as part of the wider restructuring of Rusal's debts including to Russian and Western banks."
Rusal recently agreed a two-month stay on repayments of its international loans with the potential for a further one month extension.
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