Conversion of Mechel’s debt in the amount of $3 billion into 75% of issuer’s shares to allow management to focus on operational issues

New circumstances have occurred in the search for a settlement of Mechel’s debt, the head of VTB Andrei Kostin reported to journalists during the Investment Forum "Russia is calling". According to him, the dialogue between the two companies takes place. There are some new things that appeared in recent days. "We still need a few days to see if we are ready".

Comment
Ayrat Khalikov, analyst of Veles Capital.

The basic version of the Mechel’s debt problems solution provides for conversion of $3 billion of the debt into 75% of the company’s shares. We estimated that this could reduce the interest costs of Mechel by 36% (to $260 million annually).

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