VTB exec says some progress seen in Mechel’s debt talks

MOSCOW, Apr 7 (PRIME) -- There is some progress in debt restructuring talks with metals and mining group Mechel, and the company’s fate is as important to VTB Bank, Russia’s second biggest bank, as a possible debt redemption, VTB First Deputy CEO Vasily Titov told reporters Tuesday.

“We are holding talks, very difficult talks. We see some progress in these talks. The company’s fate is as important to us as the possibility of debt redemption. I am stressing this: its fate is as important as the debt redemption,” Titov said. “We expect to solve both problems correctly.”

VTB CEO Andrei Kostin said on Monday that the bank is holding talks with other banks, including Gazprombank, on the issue and no results have been reached, but Mechel’s readiness to redeem overdue debt is positive.

According to Mechel, the company’s debt to its main creditors – Sberbank, VTB Bank and Gazprombank – amounts to U.S. $1.3 billion, $1.8 billion and $2.3 billion, respectively. Mechel has been in fruitless debt restructuring talks for about a year.

On April 3, Sberbank Deputy CEO Oleg Ganeyev said the negotiations with the company will continue as Mechel’s new debt settlement proposals made on April 2 did not suit the bank.

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