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Russian-Govt Has Two Possible Bailout Options For Mechel -Interfax
6:38a ET July 30, 2014 (Dow Jones) Print

Russian Govt Has Two Possible Bailout Options For Mechel -Interfax

By Olga Razumovskaya

MOSCOW--The Russian government has prepared two possible bailout plans for Russian coal miner OAO Mechel, Andrei Belousov, presidential aide, was quoted by Interfax news agency as saying Wednesday.
The bailout plan will entail either a debt restructuring led by Vneshekonombank, Russia's development bank, or a restructuring under which creditor banks would become Mechel's shareholders.
The heavily-indebted Russian coal and steel producer, with a net debt of over $9 billion, was in talks with its creditors to arrange a covenant vacation until the end of 2014, citing poor economic conditions.
The company has undertaken plans to concentrate on its core coal business and sell non-core assets, amid rising iron-ore prices and dwindling demand for steel.

Write to Olga Razumovskaya at [e-mail]

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(END) Dow Jones Newswires
July 30, 2014 06:38 ET (10:38 GMT)
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