Mechel to want to prolong “loan vacation” – the company to ask banks to postpone covenants for a year
Edited by Rhod Mackenzie / 2013-10-08 08:21:57
Mechel has acknowledged that it can’t repay $500 million on its consortium loan and has asked the banks to grant some respite to the company, change the covenants and not to test them not only in the current, but also in the next year. Experts think that creditors will agree to the company's request.
Mechel asks banks to prolong the covenant vacation utill the end of 20144, to change a number of covenants because of “the deterioration of macro-economic conditions” and to postpone the payment of $500 million on the consortium pre-export loan for $1 billion (PXF) for 2015-2016, Interfax reported. Sources of the Kommersant among bankers and a source, who is close to the company, confirmed this. Mechel declined to comment.
