“Mechel” has created a temporary Committee for the review of transactions with banks

Moscow. January 28. The Board of Directors of “Mechel” at the meeting on 26 January adopted the decision to establish the provisional Committee in the framework of the restructuring of the loan portfolio, says the company.

“The Board of Directors instructed the Committee established to consider transactions with banks-creditors, submitted to the approval of the extraordinary General meeting of shareholders of JSC “Mechel”, to engage an independent consultant for the purpose of obtaining an expert opinion (fairness opinion) and to make recommendations to the shareholders of JSC “Mechel” for voting for these transactions,” – said in the release.

The Committee includes all current independent members of the Board of Directors of “Mechel”. In particular, Vladimir Korovkin (Chairman of the Committee), Arthur David Johnson, Vladimir Gusev, Igor Kozhukhovsky, Yuri Malyshev.

Shareholders of “Mechel” at extraordinary meeting on March 4 will consider transactions between VTB, Gazprombank, Sberbank and Bank syndicate and “Mechel”, and also to elect a new Board of Directors.

Currently, Mechel is negotiating with one of the largest lenders – Sberbank to restructure debt. Two other major creditors – VTB and Gazprombank – the company Igor Zyuzin said in the last year.

At the end of last year, Deputy Prime Minister Arkady Dvorkovich said he believes a “reasonable” occurrence of representatives of the creditor banks to the Board of Directors of “Mechel”. In his words, “a few months ago the management of “Mechel” was ready” for it.

As of December 10, 2015 the total debt of “Mechel” is $6,178 billion, of which 66% came from the state banks. In September it decreased by 4.3%.