Mechel becomes closer to bankruptcy, VTB requires it to early pay 47 billion rubles

The position of the highly indebted and unprofitable Mechel of Igor Zyuzin has been exacerbated - VTB requires the company to early repay the loan in the amount of 47 billion rubles in connection with overdue payments in the amount of 2.9 billion rubles. According to sources of the Kommersant, the tough stance of VTB is shared by other state-owned banks-lenders that are ready to sue Mechel until its bankruptcy. The company has managed to manoeuvre between the banks, the Kremlin and the parliament building for a long time, but now there are no explicit defenders of Mechel.

On Friday, the Moscow Commercial Court took the side of VTB and demanded Mechel to pay 2.9 billion rubles of the interest on the debt to the bank. VTB is going to fill a claim on early repayment of the loan for 47 billion rubles against Mechel, the company received this requirement on November 12th, a representative of Mechel stated in court. VTB and Mechel confirmed this. The bank says that it requires the debt payment "because of the repeated and flagrant default of the obligations”. Mechel made it clear that the bank wanted it to prepay one loan, while on November 30th the total debt of the company to VTB was 61.8 billion rubles and 29 million euro. 37.5% plus 1 share of Mechel Mining (which owns the mining and production assets of Mechel) are pledged to VTB. A source familiar with the stand of creditors, says that "having got the decision on the interest", soon the bank will sue for the recovery of 47 billion rubles. Mechel plans to appeal the court's decision.

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