Russian metals and mining group Mechel and the country’s second largest bank VTB have signed an agreement to delay debt redemption till April 2022.
The company has also agreed to extend the repayment of 45 million euros of debt on trade financing until April 2022.
Mechel CEO Oleg Korzhov said that the signing of the deal with VTB meant that similar terms on debt repayment schedule with Gazprombank and Sberbank came into effect.
The restructuring of debt to state banks will allow the company to stabilize its financial state and focus on raising operating efficiency, Korzhov said.
In September Mechel CFO Sergei Rezontov said that the company was also finishing talks on restructuring of $1.5 billion debt to international creditors besides coordination of the agreement with VTB, and after all agreements were signed Mechel would redeem $550-700 million in 2017, of which interest would account for $400-500 million and principal debt for $150-200 million. (Prime/Ukrainian metal)