Mechel asks banks to delay body of debt repayment for 2 years

MOSCOW, Jul 22 (PRIME) – Debt-ridden metals giant Mechel has suggested its creditor banks reschedule repayment of a 347.5 billion ruble body of the debt for two years to 2024-2026, Deputy Chairman of one of the key creditors, Sberbank, said on Wednesday.

“Mechel sent an updated financial model to the banks in June and asked to reschedule core debt repayment from 2020—2022 to 2024-2026,” he told reporters.

“Sberbank will consider the restructuring issue after it analyzes the financial model of the company and receipt of confirmation from Gazprombank and VTB of a request to offer the same restructuring terms.”

Sberbank, Gazprombank and VTB are Mechel’s key creditors, who agreed with the company in 2016 to start repayment of the body of the debt in April 2020 in equal portions for two years.

(63.1290 rubles – U.S. $1)

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