Mechel says offers 348 bln rbl debt rescheduling to banks

MOSCOW, Jun 28 (PRIME) -- Russian metals and mining group Mechel has sent proposals to major state-owned creditor banks to reschedule its 347.5 billion ruble debt, CFO Nelli Galeyeva said on Friday during an annual general meeting of the company’s shareholders.

“We sent a proposal to our largest creditor banks in June offering changes to the schedule of the company’s debt portfolio repayment. We expect to launch joint dialogue, discussion of conditions and parameters of rescheduling very soon. We don’t have a coordinated position yet, so it is too early to announce the parameters,” she said.

Mechel CEO Oleg Korzhov said that the company wants to delay repayment because of the difficulties in redeeming principal debt, while it has no problems with paying interest.

Galeyeva also said that the company planned to reach an agreement over restructuring of a U.S. $460 million export credit agency-guaranteed (ECA) loan until the end of 2019.

“The non-restructured credit portfolio share of Mechel stands at 8% now…As of today, we have reached a partial agreement with ECA creditors on small amounts, but in the portfolio of all creditors, which currently stands at $460 million, we’ve reached an agreement over an about 10–12% of the sum,” she said.

Mechel also suggested that ECA creditors join the restructuring negotiations that the company started with its major creditors – VTB Bank, Gazprombank, and Sberbank. The creditors are now in dialogue.

(63.0452 rubles – U.S. $1)

End