Mechel eager to clear with creditors on loan settlement extension till 2023 - newspapers
January 12, 2016 ТАСС
Mechel negotiations with creditors on restructuring of its $6.18 debt, which the company planned to finalize by March, may be stalled, Kommersant and Vedomosti business newspapers wrote on Monday with reference to sources familiar with the matter.
According to the sources, Mechel is eager to extend due date of part of its debt till 2023 though it hasn’t yet succeeded in reaching a respective agreement with all pool of creditors.
Also, the deal on Gazprombank’s acquisition of a controlling stake or 100% of shares of Elgaugol, which owns license for Elga coal deposit, from Mechel, which is necessary for restructuring of its debt to Sberbank, hasn’t been closed until the end of last year, Kommersant reports.
In autumn 2015, Mechel cleared with VTB and Gazprombank on loan settlement in 2017-2020 while in end-December the company settled it out of court with Sberbank on suits worth $720 mln and 3.3 bln rubles. Mechel had to repay 31.5 bln rubles worth of its debt to Sberbank on December 22 and the remaining part in 2017-2020 or in 2020-2023 in case VTB and Gazprombank agreed to similar terms.
"Debt rescheduling is quite probable but all banks should agree to equal terms," a person close to one of the 3 lenders confirmed to Vedomosti.
According to Kommersant sources, up to now Mechel hasn’t repaid 31.5 bln rubles to Sberbank, which is related to a delay in Elgaugol deal. The reason are "tough multifaceted negotiations" and not just the asset’s estimation, the sources added. Head of Sberbank Herman Gref said in end-December that the bank had accorded the terms for Mechel’s debt restructuring with Gazprombank, however, Russia’s biggest lender "will still be able to drop the other shoe, meaning bankruptcy" at the beginning of 2016 in case Gazprombank and Mechel do not reach any agreements between each other.
Representatives of VTB said the bank "is closely cooperating with Mechel within the reached agreements on restructuring and the work on final compliance with all terms is underway" when commenting on the issue. Mechel, Sberbank and Gazprombank refused to give comments.
Company — Mechel
Full nameMechel PAO