As they say in the message of “Mechel” at extraordinary General meeting of shareholders of the company held on 26 may, the decision was made to restructure the debt of the company to VTB, Gazprombank, Sberbank and Bank syndicate. “We are very grateful to our minority shareholders who voted for the debt restructuring of “Mechel”. <…> Thanks to all who did not remain in the side!” said the company’s General Director Oleg Korzhov.
The meeting was the second attempt of “Mechel” to the resolution of the shareholders in transactions with banks. Before the restructuring plan was agreed by the company with banks, however, held on 4 March meeting, the question was not approved due to the lack of a 50 percent quorum.
The restructuring plan of “Mechel” and creditors agreed in early February. It provides for the postponement of the payment of debts, 2016-2017 for the years 2020-2022 and the increase in collateral on loans and cross-guarantees. The approval of minority shareholders was necessary because the last part of the transaction is subject to the law on related party transactions.
Earlier, one of the owners of ADR Michael Karev said that the minority shareholders support the restructuring and are not interested in bankruptcy of the company, which will threaten it in the case of a negative decision on restructuring. That first meeting in March failed to gather quorum, the management of Mechel explained that the company was unable to identify the number of ultimate beneficiaries ADR because of the complex ownership structure of Depositary receipts of Mechel.
Mechel is the most indebted Russian metals companies. The group’s net debt as of 1 September 2015 was $6.3 billion, a Large part of the debt is owed to Gazprombank ($1.7 billion), Sberbank ($1.3 billion) and VTB ($1.1 billion). Another $1 billion by the company to the syndicate of banks, other loans — public. Before these creditors debt of “Mechel” is $5.1 billion