Mechel informs about restructuring of debt to VTB

Moscow, OAO Mechel, a Russian mining and metallurgical company, announces the signing of agreements on the restructuring of the debt to VTB Bank in the amount of 70 billion rubles.

Borrowers under the credit lines are Mechel OJSC and the Group's subsidiaries such as Yakutugol OJSC, Yuzhny Kuzbass OJSC and ChMK PJSC. The agreements reached on loans assume a deferral of the repayment of the debt until April 2017 with subsequent monthly repayment until April 2020.

Andrey Kostin, President and Chairman of the Management Board of VTB Bank, commented: “I am glad that our difficult negotiations with Mechel have been successfully completed. I hope that the new loan terms will allow the Mechel Group, with which we have long-term cooperation, to continue implementing investment projects and fulfill all its obligations. "

In turn, Igor Zyuzin, Chairman of the Board of Directors of Mechel OAO, noted: “We are grateful to VTB Bank for their support. The restructuring carried out will allow the company to service its debt even in today's conditions, when the global commodity market is in a difficult situation. Mechel will do everything possible to fulfill its obligations in accordance with the agreements reached and will continue to develop its Far Eastern projects. "