Russia’s Sberbank, Mechel fully shift to out-of-court settlement

MOSCOW, Feb 16 (PRIME) -- Top Russian lender Sberbank has suspended all legal procedures against debt-ridden metals and mining giant Mechel, but will resume them if the debtor violates conditions of an amicable debt settlement, CEO German Gref told reporters on Tuesday.

“We have reached a preliminary agreement with Mechel, but there is a range of suspensive conditions, which must be fulfilled on time. It is quite a significant set of conditions,” he said.

Mechel said earlier in February it had reached debt restructuring deals with its all largest creditors -- Sberbank, VTB Bank and Gazprombank.

The total volume of debt that will be restructured will amount to U.S. $5.132 billion, or 80% of the company’s total debt. Mechel’s debt to Sberbank is estimated at $1.267 billion.

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