Mechel might survive by the means of its new project in the Far East

Mechel might be able to settle $7.5 bln of its debt by obtaining 20% in a new mining and metallurgical company in the Far East. The basis of the consortium with the attraction of the Russian and foreign investors might become a number of the assets of Mechel, Evraz and “Amurmetal”,belonging to VEB Kommersant reports.

The interlocutor described the scheme in the following way: a consortium is formed with the participation of Russian and foreign investors. With their funds, plus the funds of the state banks and VEB, the consortium purchases all Mechel’s assets (besides the American Bluestone), the West-Siberian metallurgical plant (ZSMK), “Raspadskaya” and the iron ore project “Timir” (JV of Evraz, Alrosa and VEB in which it has the golden share) from Evraz as well as obtaining Amurmetal” (belonging to VEB).

The consortium will also comprise the shareholders of the Vanino port that will enter it into the registered capital. The consortium will pay for the assets in cash, using its own funds and bonds.