VTB insists upon conversion of Mechel’s debt to shares

VTB insists upon the conversion of Mechel’s debt into shares, the chief of VTB Group A. Kostin says. They have not met any support for the idea in the company as yet. If not, the bank will have to use legal proceedings. VTB is dissatisfied with the plan Mechel suggests because it does not solve the main problem. In the opinion of VTB, the current debt burden is too heavy even with a major debt restructuring.

Earlier ITAR-TASS reported that the Government has coordinated 2 schemes for the saving of Mechel and avoiding its bankruptcy. At the same time, they presupposed at least the temporary loss of control over the company by its majority shareholder I. Zyuzin. A source close to a creditor bank claims that most of the financial entities support the scheme.

At the end of August, Mechel suggested to the creditors to convert the loans in foreign currency to rubles at the discount rate of Central Bank plus 1-2%.