UPDATE2: Russia Mechel agrees restructuring drafts with Sberbank - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE2: Russia Mechel agrees restructuring drafts with Sberbank

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MOSCOW, Dec 16 (PRIME) -- Russian metals and mining giant Mechel has agreed debt restructuring drafts with top national lender Sberbank and plans to sign them soon, Mechel CEO Oleg Korzhov said during a conference call on Wednesday.

We have done quite a lot of work with Sberbank to adjust terms of debt restructuring and fully adjusted draft amicable agreements and loan documentation. Consequently, we plan to sign all this soon, he said.

Sberbank is Mechels third largest lender after Gazprombank and VTB, with which it has already reached an amicable settlement.

The company also negotiates with possible partners on development of the Elga coal field. The fields reserves stand at over 2.1 billion tonnes of coal and it is developed by Mechels subsidiary Yakutugol. Mechel discussed the sale of a stake in the project as part of its debt settlement talks, but a search for investors was complicated by a poor market.

Mechels net debt decreased 7% in JulySeptember to U.S. $6.454 billion as of September 30, and contracted to U.S. $6.178 billion as of December 10, as seen by PRIME in the companys materials. The share of U.S. dollars in the debt amounts to 58%, of euros to 6% and of rubles to 36%. The debt to local banks accounts for about 68%, to foreign banks for 24% and other debt instruments account for the remaining 7%.

According to the company, its net debt/EBITDA ratio amounted to 8 as of late September, with the bulk of the debt being a short-term one as the company is still in debt restructuring talks with its creditors. Mechels capital expenditures contracted about 74% on the year to $115 million in JanuarySeptember.


16.12.2015 19:21
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