RIA Novosti - EDB postpones repayment of the RUB 1.9 billion loan for Yakutugol of Mechel Group until June 2018

According to Mechel, Yakutugol, a member of its group, signed an agreement with Eurasian Development Bank (EDB) to revise the repayment schedule for a loan of approximately RUB 1.9 billion, which it received before.

"In accordance with the agreement, the repayment period has been extended until 22 June 2018. The collateral has remained unchanged," Mechel states.

On Tuesday, the Court of Arbitration of the Sakha (Yakutia) Republic approved the settlement agreement with respect to EBD's claim of more than RUB 2 billion from Yakutugol.

The plaintiff demanded that the defendant repay the outstanding amounts under the non-revolving loan facility agreement dated 22 June 2011. The initial amount claimed was RUB 1.985 billion, however at the previous meeting in August the Bank increased it to RUB 2.085 billion, including RUB 1.8 billion of principal, RUB 73 million of interest, and RUB 155 million of default interest.

According to Mechel, its overall debt as at 1 September 2015 was US $6.313 billion. Out of this, 59% was borrowed in the dollars, 35% in the rubles, and 6% in the euro. Domestic banks accounted for 66% of loans and foreign banks 23%.

Mechel is one of the world's leading companies engaged in mining and metallurgy. It was established in 2003 and comprises over twenty industrial enterprises - the producers of coal, iron ore, steel, rolled metal products, ferrous alloys, heat and electrical power. The main shareholder of the company is its Chairman of the Board of Directors Igor Zyuzin.