Mechel sells its assets 5 times cheaper than it bought them

Igor Zyuzin's Mechel is be deep in a hole and its negotiations with credit orbanks become more and more difficult. Almost the whole team of managers, headed by general director Evgeny Mikhel, left Zyuzin. Today Mechel is valued at about $800 million that is 30 times less than its historical maximum of 2008.

As of end of 2013, the company's debt was $9 billion. From 2006, Zyuzin attracted large loans from banks and bought assets all over the world. Now Mechel sells its overseas enterprises with huge losses to pay off its creditors. Those familiar of Ziuzina call him a man who "doesn't know the phrase "to sell". Mikhel persuaded the oligarch to get rid of some unprofitable enterprises with great difficulty. By September of 2012, he prepared a list of them, which included almost all acquisitions of 2007-2009 (including OrielResources and Bluestone, which cost $2.5 billion). In total, Mechel spent $6.6 billion to purchase these assets.