Mechel abandons bankruptcy moratorium, to pay dividends

MOSCOW, Sep 23 (PRIME) -- Russian metals and mining company Mechel has abandoned a moratorium on bankruptcy and plans to make a deferred payment of dividends, the company said in a statement on Wednesday.

“Hereby, Public Joint Stock Company Mechel ... declares its refusal to apply against Mechel PAO a moratorium on the initiation of bankruptcy proceedings on applications filed by creditors (hereinafter – the moratorium), introduced on the basis of a resolution of the Russian government... to the Unified Federal Register of Bankruptcy Information,” the company said.

A representative of Mechel confirmed abandoning the moratorium, due to which the procedures for the buyback of shares and the payment of dividends were suspended, and confirmed the company's intention to fulfill these obligations.

In early July, Mechel's shareholders approved paying 3.48 rubles per preferred share in dividends for 2019, but said later the obligation was not fulfilled in full in the total amount of 480.45 billion rubles. Mechel used the right to bankruptcy granted by the government and, accordingly, to pay dividends. A representative of the company said earlier that Mechel intends to fulfill its obligations to pay dividends after the end of the moratorium.

(76.2711 rubles – U.S. $1)

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