VTB grants a respite to Mechel

Currently the Government and the state-owned banks are deciding the fate of Mechel - to bankrupt it or to refinance its debt ($8.3 billion at the end of 2013). Various schemes and options are considered, including state guarantees, attracting VEB as a surety and even the suspension of Igor Zyuzin (now he owns 67.42% of Mechel) from the company's management.

While the disputes take place, Mechel managed to agree on the refinancing with one of the largest creditors – VTB ($1.8 billion), the company announced yesterday. The total amount of postponed repayments amounted to 33.8 billion rubles, including 18.6 billion rubles in 2014, 6.4 billion rubles in 2015 and 8.8 billion rubles in 2016. Previously, it was assumed that the company will start paying off its debt to VTB this year.