Minister of Finance thinks bankruptcy of Mechel is possible

The Minister of Finance, A.Siluanov thinks the bankruptcy of Mechel is possible as one of the variants of the restructuring of the company.

As of mid May 2014, the net debt of Mechel, one of the most debt loaded mining and smelting companies of Russia, made up $8.3 billion. The schemes of saving the company have been discussed for many years.

Siluanov says that new credits can be financed, if the management of the company secures a loan. Otherwise, they will think about the transfer of production to another owner. The Minister of Finance leaves open the possibility of bankruptcy as one of the variants of further actions towards the company. It does not mean termination of the enterprise and mass dismissal, but its transfer to a more efficient owner, he says.