CORRECTED – Vekselberg says Oerlikon debt plan will work-paper

(Corrects name of newspaper to TagesAnzeiger from NZZ; also
removes superfluous apostrophe in first paragraph)

* No reason restructuring to fail – Vekselberg

* Vekselberg confirms capital hike payment of 450 mln Sfr

* Renova holding group to remain top shareholder

ZURICH, March 24 (BestGrowthStock) – Swiss engineer Oerlikon’s
(OERL.VX: ) restructuring plan, including a 1 billion Swiss franc
($942 million) rights issue, will solve the debt-laden group’s
troubles, a Swiss paper quoted its biggest shareholder as
saying.

Russian billionaire Viktor Vekselberg, who holds a 45
percent stake in Oerlikon, also said his holding group Renova
would remain the biggest shareholder after the capital hike, in
an interview on Wednesday in the TagesAnzeiger.

Vekselberg said he would contribute 450 million francs to
the rights issue, confirming Reuters’ report of Tuesday.
[ID:nLDE62M0L3]

“A good proposal is on the table and it will finally solve
the financial problems that brought on the restructuring,” he
said, adding he saw no reason for the restructuring to fail.

Oerlikon has proposed a refinancing plan that also involves
a debt-to-equity swap and some debt being waived.

The group has been locked in intense talks to renegotiate a
2.5 billion franc syndicated loan it took to refinance the
purchase of car parts and machinery maker Saurer in 2006. The
first repayment of 600 million francs is due by the end of
March. [ID:nLDE61903S]

The over 100-year-old company has grappled with a sharp drop
in demand in its key markets due to the most severe economic
downturn in decades and recently named restructuring veteran
Michael Buscher CEO as it tries to keep the operational side of
its business on track. [ID:nLDE61903S]

More than 20 banks and other institutions have been involved
in the discussions. Some of the banks sold their debt on to
other players, including hedge funds specialising in distressed
debt, which has made the talks more complex.

When asked whether he planned to merge Oerlikon with Swiss
engineering group Sulzer (SUN.S: ), in which he also holds a
stake, Vekselberg said: “Oerlikon and Sulzer are two separate,
listed companies.” Speculation about a merger between the two
have repeatedly surfaced in recent years.

Investing Analysis

(Reporting by Catherine Bosley; Editing by Dan Lalor)
($1 = 1.062 Swiss francs)

CORRECTED – Vekselberg says Oerlikon debt plan will work-paper