Deripaska credit crunched in $1bn margin call

Oleg Deripaska, founder, sole owner and chairman of Basic Element, the holding company that controls Russian aluminium giant Rusal, has been forced to divest his 20% stake in Magna International, acquired in May 2007. It follows a margin call made as the value of the Canadian car-parts manufacturer fell, according to a report in the Financial Times.

The sale raises questions over the indebtedness of Deripaska’s empire as it seeks to re-finance a $4.5bn loan used to purchase a 25% share stake in Norilsk Nickel in April 2008. The value of that stake has halved in the financial turmoil of the Summer and Autumn, complicating the refinancing process.

While Deripaska is considered Russia’s richest man with a net worth of more than $28bn, his business empire is also highly geared, with Rusal, according to the FT, carrying some $14bn in debts.

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