MECHEL HAS COMPLETED RESTRUCTURING WITH RUSSIAN STATE BANKS
Moscow, Russia – December 26, 2016 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, reports signing agreements with
VTB Bank for extending the maturity of the debt on its credit lines until 2022.
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.
