Russia’s Mechel wants to change contract with VTB Bank

MOSCOW, Feb 24 (PRIME) -- Russia’s debt-ridden metals and mining group Mechel has sent a request to the Moscow Arbitration Court to annul a clause in its credit agreement with VBT Bank, under which the bank has filed a 50.182 billion ruble suit against the company, a representative for the court told PRIME Tuesday without naming the exact clause.

A preliminary hearing was scheduled for April 15. Mechel also asked the court to prohibit VTB to write off money from the company’s accounts in the bank, but the court rejected the claim.

The representative also said Mechel has asked to annul a October 29 notification of the bank on without disclosing its contents. During the previous legal hearings, it was said that Mechel received a notification, in which VTB demanded an early redemption of an about 47 billion ruble debt, in early November 2014.

Mechel has been in fruitless debt restructuring talks with its main creditors – Sberbank, Gazprombank and VTB Bank, for several months. The company’s total debt amounted to U.S. $7 billion as of December 1.

VTB wants to receive a stake in Mechel in exchange for a debt write-off until June.

(61.7235 rubles – U.S. $1)

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