Russia's Mechel agrees debt restructuring deal with VTB

27 Dec, 2016

Russian metals and mining company Mechel says: Signed agreement with VTB extending the maturity of credit lines worth 70.2 billion roubles ($1.15 billion) until the first quarter of 2022. VTB has also agreed to extend the maturity of Mechel's trade financing, with an outstanding balance of 45 million euros ($47 million), until April 2022. The deal completes Mechel's debt restructuring process with Russian state banks.
"The signing of these agreements with VTB Bank means that similar conditions on debt repayment to those we made with Gazprombank and Sberbank will now come into force," Mechel Chief Executive Oleg Korzhov said in a statement. "We can say that the extensive restructuring process with Russian state banks, which hold 67 percent of Mechel's debt, is complete." Mechel also hopes the deal will speed up its talks on debt restructuring with its international lenders.

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