Mechel reports restructuring 320-million-dollar loan
Mechel PAO, a leading Russian mining and metals company, announces signing a settlement and undertaking agreement with Gazprombank.
Gazprombank acquired in full all rights from a foreign lender as stipulated in the 2010 loan agreement with Chelyabinsk Metallurgical Plant, which was granted, inter alia, under guarantees from foreign export credit agencies.
The terms of the agreements include partial forgiveness of the total debt, conversion of the new debt’s entire amount into rubles, and repayment of the debt within two years.
Gazprombank adopted a constructive approach, which enabled the company to restructure the debt not only regarding the tranche provided by Gazprombank, but in full for all three tranches. Thus, the size of Mechel Group's unsettled loan obligations decreased from 15% to 3% of the Group's loan portfolio. Mechel does not have any unsettled liabilities on loans granted by Russian financial organizations.
