Mechel will restructure its debt to Sberbank

Mechel Group’s companies – Chelyabinsk Metallurgical Plant, Southern Kuzbass Coal, Mechel Trading, Yakutugol, Bratsk Ferroalloys Plant, Korshunov Mining Plant and Izhstal – signed agreements with Sberbank on restructuring of their obligations totaling 13 billion rubles and 427 million dollars. Restructuring of Chelyabinsk Metallurgical Plant debt, totaling 17 billion rubles, shall be finalized shortly following the court approval of signed amicable settlement agreements.

Amicable settlement agreements and loan agreements set the grace period until April 2017 with monthly principal repayments starting from April 2017 till April 2020, and capitalization of up to 40% interest payments. Grace period may be extended until January 2020 with loan maturity until April 2022 if VTB Bank agrees to similar conditions and if other conditions subsequent are fulfilled in 2016.

In order to complete the restructuring, Mechel Group must repay part of its indebtedness to Sberbank and Sberbank Leasing, totaling 2.8 billion rubles.

The court also approved amicable settlement agreements with Viamelion Consultants (Cyprus), part of Gazprombank, which has become legal successor to Sberbank regarding Southern Kuzbass Coal’s debt of 423 million dollars and 3.1 billion rubles.