Sberbank plans to finish a deal on debt restructuring of “Mechel” on time

Sberbank plans to finish a deal on debt restructuring of “Mechel” on time

MOSCOW, March 9. Sberbank expects to complete a deal on debt restructuring of “Mechel” on the agreed date despite not having taken place last Friday, March 4th, the vote of the shareholders of the company.

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Mechel failed to gain a quorum to vote on debt restructuring.

According to the press service of the credit institution, transactions under debt restructuring the group of companies “Mechel” before the savings Bank require corporate approvals by the shareholders of the group companies, including JSC “Mechel” (as the main guarantor and mortgagor).

“By law, the company has the ability to hold repeated meeting of shareholders and to receive the approval soon, we can complete the transaction within the agreed period”, – noted in a press-service of Sberbank.

March 4, at the shareholders meeting “Mechel” managed to gather the necessary quorum of 50% voters of a minority of shareholders to vote on the issue of debt restructuring. According to the company’s General Director Oleg Korzhov, the extraordinary shareholders ‘ meeting of Mechel debt restructuring could take place in may.

The total amount of restructured debt “Mechel” of $5.1 billion or 80% of the total debt and includes only the major creditors of the company – Sberbank ($1,267 billion), Gazprombank ($1,793 billion), VTB ($1,068 billion) and a syndicate of international banks ($1,004 billion).

In early February, “Mechel” has published the terms of agreements with creditor banks. According to the agreement, Mechel’s total debt which is $6.2 billion, may defer the repayment of the most part of loans from 2017 to 2020.