MOSCOW, 9 Nov. The ninth arbitration appeal court on Monday will hold a hearing on the complaint of OJSC “Mechel” on the decision of the lower arbitration of Moscow, who ruled with him for about a 50.2 billion rubles in favor of the second-largest assets of the Russian state Bank VTB.
At the previous meeting on 8 September, the parties asked the court time to complete negotiations on peaceful settlement of the dispute. The next day, VTB and Mechel have officially announced the signing of an agreement providing for the debt restructuring steel company at 70 billion rubles and termination of all court proceedings around these debts.
New credit agreements provide, inter alia, deferment of repayment of principal until April 2017 followed by a monthly repayment until April 2020. Borrowers on lines of credit are OJSC “Mechel” and the group’s subsidiaries — JSC “southern Kuzbass”, JSC “Yakutugol” and JSC “CHMK”.
The representative of “Mechel” on 9 September reported that the agreements also mean “the termination of proceedings by waiving the pending claims, complaints or otherwise agreed by the parties.” In accordance with the procedural laws, arbitration proceedings on the case shall be terminated in connection with the approval of the settlement agreement or because of a Nolle prosequi.
Arbitration in Moscow on the suit of VTB sought to the steel company about a 50.2 billion rubles of debt under the credit agreement dated December 27, 2010. The Bank demanded to repay the loan after the borrower in March 2014, ceased to serve him.
The trial court ruled with “Mechel” more than 44.5 billion rubles of principal debt, RUR 3.2 billion percent, 1.9 billion roubles of the penalty on principal debt and 557 million roubles of the penalty for late payment of interest.
“Mechel” — one of the world’s leading companies in the mining and metallurgical industries, it includes over 20 industrial enterprises. At the same time it is one of the most overleveraged metallurgical companies of Russia (duty on June 15 6,772 billion).
“Mechel” managed to agree on debt restructuring with its two largest creditors — Gazprombank and VTB. With Gazprombank, Mechel on August 31 signed an agreement on the restructuring of the entire debt, totaling $ 1.4 billion and 33.7 billion. The third and most demanding creditor of the company — Sberbank expects to complete negotiations before the end of the year. Debt “Mechel” before the savings Bank is estimated at $ 1.3 billion.
Total debt of “Mechel”, according to the company, on September 1, 2015 amounted to $ 6,313 billion. The main owner of the company Igor Zyuzin on 29 October said that “Mechel” has improved relations with creditors and was able to reduce its debt burden due to the devaluation of the ruble.