Official: Russia’s Mechel hires Rothschild to talk to creditors
MOSCOW, Mar 4 (PRIME) -- Russian debt-ridden metals holding Mechel has signed a deal with consulting agency Rothschild Group to negotiate with its creditors, a Mechel official told PRIME Wednesday.
Forbes reported earlier citing a source close to one of the deal participants that Rothschild could find a way to restructure Mechel’s debt that would suit its key creditors Sberbank, Gazprombank and VTB.
Creditor banks, whom Mechel owed U.S. $7 billion as of December 1, demand a dismissal of Mechel President and core owner Igor Zyuzin and control over the company. Zyuzin suggested Mechel issue bonds for state-owned Vnesheconombank (VEB), which will be later converted into 85% of Mechel’s capital, but the plan was rejected. Only Gazprombank agreed with the debt restructuring schedule proposed by Mechel separately.
Mechel is also preparing documents to ask the government for help under an anti-crisis plan.
The government is currently considering a draft regulation that would allow firms that bailout a company to confiscate its property from owners.
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