Petropavlovsk will not be the "second "Mechel"".

The Russian State banks have given the company covenant holidays.

The gGold mining company Petropavlovsk has had to pledge its operating assets so that Sberbank and VTB could provide it covenant holidays until the end of the year. In parallel the company continues its negotiations on the restructuring of its bonds of $ 310.5 million with bondholders and shareholders. The analysts believe that the rise in gold prices and the depreciation of the rouble now support Petropavlovsk, but in the long-term the risks for the company remain.

Petropavlovsk has pledged as security the shares of its operating subsidiaries as collateral for the loans from Sberbank and VTB, the CFO Petropavlovsk, Andrew Maruta stated yesterday. This had to be done so that the banks had agreed to provide the company covenant holidays until December 31st, he explained. The Chinese bank ICBC, the lender to the iron ore company IRC included in Petropavlovsk, according to Mr. Maruta, will also receive a pledge of "a small package" of the shares of IRC.