UPDATE: Russia’s Mechel, VTB agree to delay debt redemption to April 2022

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MOSCOW, Dec 26 (PRIME) -- Russian metals and mining group Mechel and the country’s second largest bank VTB have signed an agreement to delay debt redemption to April 2022, as seen by PRIME in the company’s materials on Monday.

The company has also agreed to extend the repayment of 45 million euros of debt on trade financing until April 2022.

Mechel CEO Oleg Korzhov said that the signing of the deal with VTB means that similar terms on debt repayment schedule with Gazprombank and Sberbank come into force.

The restructuring of debt to state banks will allow the company to stabilize its financial state and focus on raising operating efficiency, Korzhov said.

In September, Mechel CFO Sergei Rezontov said that the company was also finishing talks on restructuring of U.S. $1.5 billion debt to international creditors besides coordination of the agreement with VTB, and after all agreements are signed Mechel will be to redeem $550–700 million in 2017, of which interest will account for $400–500 million and principal debt for $150–200 million.

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