Mechel has agreed with Gazprombank on its debt

Mechel has agreed the restructuring plan with Gazprombank. This scheme was submitted to two other creditors – VTB and Sberbank – but they still think about it. 68% of Mechel’s debt was issued by these 3 banks with the Government participation. “Recently we approved a variant of debt restructuring with Gazprombank and sent it for further discussion to Sberbank and VTB. It is difficult to speak about the periods but I think soon we will come to an agreement on restructuring with all the banks”, Mr. Slivchenko said. Mechel owes 26.8 bln roubles to Gazprombank and $1.4 bln, to VTB – over 60 bln roubles. But the company needs to restructure almost the entire debt. According to the recently published repot under US GAAP, Mechel’s net debt, not including its financial lease debts, fell in Jan-September 2014 by 14% from $9.087 bln to $7.836 bln in annual terms. In Q3 it fell 9% from $8.650 bln to $7.836 bln against Q2.