Mechel Has Completed Restructuring with Russian State Banks

According to the signed agreements totaling 70.2 billion rubles, payments on the debt was extended till first quarter of 2020 with repayment by the first quarter of 2022. Simultaneously conditions of the trade financing, with outstanding balance of 45 million euro, were also renegotiated and the deal was extended until April 2022.

“We thank all our lenders for their constructive and balanced approach. Signing of the agreements with VTB Bank means that similar conditions on debt repayment that we made with Gazprombank and Sberbank will now come into force. So we can say that the extensive restructuring process with Russian state banks, which hold 67% of Mechel’s debt, is complete. This restructuring will enable the company to stabilize its financial position and focus on operational efficiency. We hope that this will also speed up restructuring agreement with our international lenders. Considering the positive trends on commodity markets and the additional cash flow from our implemented investment projects, we will make every effort to begin repaying our debt early, to decrease the company’s debts,” Mechel PAO’s Chief Executive Officer Oleg Korzhov noted.