Mechel can be saved by Far Eastern project

Mechel can pay off $7.5 billion of its debt via getting 20% in the new Far Eastern mining and metallurgical company. The basis of the consortium with attraction of the Russian and foreign partners can be several assets of Mechel, Evraz and VEB’s Amurmetal, Kommersant reports.

The source of the newspaper claims that they found the consortium with participation of the Russian and foreign partners that will buy out all Mechel’s assets with exception for Bluestone, ZSMK, Raspadskaya and Timir iron ore project, the joint venture of Evraz, Alrosa and VEB holding the golden stock, at the expense of the investors, the state banks and VEB. The consortium also gets VEB’s Amurmetal. They will also join the consortium the shareholders of the Vanino port that will bring the object to its authorized capital. The consortium will pay for the assets in cash, with own shares and bonds.