Mechel Reports Restructuring Loan With Sberbank
April 18 2016 - 9:30AM
Mechel PAO
(MICEX:MTLR) (NYSE:MTL)
, one of the leading Russian
mining and metals companies, reports the signing
and court approval of settlements restructuring Mechel’s debt to
Sberbank totaling approximately 30 billion rubles and 427 million
US dollars.
Mechel Group’s enterprises – Chelyabinsk
Metallurgical Plant PAO, Southern Kuzbass Coal Company PAO, Mechel
Trading AG, Yakutugol Holding Company OAO, Bratsk Ferroalloys Plant
OOO, Korshunov Mining Plant OAO and Izhstal OAO – reached a
settlement with Sberbank on restructuring obligations totaling 13
billion rubles and 427 million US dollars. The settlement regarding
the debt of Chelyabinsk Metallurgical Plant PAO, totaling 17
billion rubles, is due to be completed shortly as the court is due
to approve a prior signed agreement.
The settlements and loan agreements set the
grace period until April 2017 and loan maturity in April 2020 to be
paid in monthly installments, and a postponement of payment of up
to 40% interest payments. The main debt’s grace period may be
extended until January 2020 with loan maturity until April 2022 if
VTB Bank agrees to similar conditions and if other conditions are
met in 2016.
In order to complete restructuring, Mechel Group
must repay part of its debt to Sberbank and Sberbank Leasing,
totaling 2.8 billion rubles.
The court also approved settlements with
Cyprus-based Viamelion Consultants Limited, part of Gazprombank
(AO) group, which has become legal successor to Sberbank regarding
Southern Kuzbass Coal Company PAO’s debt of 423 million dollars and
3.1 billion rubles.
Mechel is an international mining and steel
company which employs 67,000 people. Its products are marketed in
Europe, Asia, North and South America, Africa. Mechel unites
producers of coal, iron ore concentrate, steel, rolled products,
ferroalloys, heat and electric power. All of its enterprises work
in a single production chain, from raw materials to high
value-added products.
Some of the information in this press release
may contain projections or other forward-looking statements
regarding future events or the future financial performance of
Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to
caution you that these statements are only predictions and that
actual events or results may differ materially. We do not intend to
update these statements. We refer you to the documents Mechel files
from time to time with the U.S. Securities and Exchange Commission,
including our Form 20-F. These documents contain and identify
important factors, including those contained in the section
captioned “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in our Form 20-F, that could cause the
actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others,
the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of
competitive pricing, the ability to obtain necessary regulatory
approvals and licenses, the impact of developments in the Russian
economic, political and legal environment, volatility in stock
markets or in the price of our shares or ADRs, financial risk
management and the impact of general business and global economic
conditions.
Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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