TASS - Mechel restructures its loan facilities with Eurasian Development Bank

Mechel signed a settlement agreement in the course of proceedings brought by Eurasian Development Bank (EDB) against Yakutugol. According to Mechel, the agreement envisions the restructuring of EDB's loan facilities.

Yakutugol of Mechel Group signed an agreement with EDB to revise the repayment schedule for the RUB 1.9 billion loan it received from the bank earlier. "In accordance with the agreement, the repayment period has been extended until 22 June 2018.

The collateral has remained unchanged," Mechel states.

Last week Mechel's Vice President for Finance Andrey Slivchenko said that about 47% of Mechel's debts still need to be restructured.

Mechel's overall debt as at 1 September 2015 was US $6.3 billion. Out of this, 66% of loans were provided by domestic banks (Sberbank, Gazprombank and VTB), 23% by international banks, 4% are bonds, and 5% other borrowings.

In August-September 2015, Gazprombank and VTB signed an agreement with the company to restructure its debts. The loan agreements postpone the repayment of the principal until April 2017, with subsequent monthly repayments until April 2020.

Mechel continues negotiations with Sberbank to restructure its debts (RUB 32.8 billion and US $778 million). Oleg Korzhov, General Director of Mechel, said that the company expected to complete debt restructuring within the next few months.