Banks bargain for Mechel’s debt

The Vedomosti has got to know details of the negotiations for the sale of the Mechel’s debt by Sberbank to Gazprombank. Initially, top managers of Sberbank announced their intention to cede the entire debt - $1.36 billion, and to do it at face value. The largest lender of Mechel - Gazprombank ($2 billion) – expressed willingness to bpurchase the debt, the negotiations on this matter are conducted for about a month.

But Gazprombank strongly disagrees to buy the debt at face value. It immediately asked for a discount - 30% of the face value, two people close to the opposite sides of the negotiations report. Sberbank proposed to reduce the discount to 10-15%. In such circumstances, Gazprombank agreed to buy only half of the Mechels’ debt to Sberbank, says one of the Vedomosti’s interlocutors. "A half or a third," - the second source notes. He adds that the final decision hasn’t yet been made and the negotiations continue.