Rusal, NLMK under pressure in tough market

While most Russian loan syndications continue to be a struggle, some of the country’s top borrowers are coming under additional pressure. UC Rusal is meeting banks to discuss refinancing options on its troubled $4.5bn loan, as it faces the possibility of losing its stake in Norilsk Nickel. Meanwhile, steel producer NLMK has been sued by US private equity firm Carlyle, which alleges that NLMK has not complied with the terms of its agreement to buy John Maneely Company, the steel tube business Carlyle is selling. The deal is backed by a $2bn loan, and syndication is on hold.