UPDATE: Russia’s Sberbank drops $12 mln suit against Mechel

(Adds details in third, last paragraphs)

MOSCOW, Jul 26 (PRIME) -- The Moscow Arbitration Court has suspended proceedings on Russian top bank Sberbank’s U.S. $11.7 million debt suit filed against metals and mining group Mechel and its affiliates as the bank rejected the suit, according to information obtained by PRIME in the court on Tuesday.

The affiliates listed as co-defendants include Chelyabinsk Metallurgical Plant, Mechel-Trans, Bratsk Ferroalloy Plant, Mechel-Service and Mechel Trading.

A representative of Sberbank said at court that the claimant sought redemption of the body of the debt, interest and forfeits, which the defendant repaid before a court hearing. The bank and the company signed an additional agreement regarding the body of the credit. No other details were disclosed.

In April, representatives of Sberbank and Mechel told the court that the companies had almost reached an amicable agreement on the suit. Initially the bank demanded Mechel and affiliates redeem about $6.6 million, but the bank increased the claim in February.

Mechel earlier agreed to restructure U.S. $5.1 billion out of its $6.2 billion total debt, including $1.267 billion worth of debts to Sberbank, $1.8 billion of debts to Gazprombank, about $1 billion of debts to VTB, and $1 billion of debts to a syndicate of foreign banks.

End