Mechel Reports Restructuring Loan with VTB

Mechel and the group’s enterprises – Southern Kuzbass Coal Company, Yakutugol Holding Company and Chelyabinsk Metallurgical Plant – act as borrowers on the loans.

The loan agreements set the grace period until April 2017 and loan maturity in April 2020 to be paid in monthly installments.

“I am glad that our complicated negotiations with Mechel are successfully over. I hope that the banks' new conditions will allow Mechel Group, which we have worked with for many years, continue implementation of its investment projects and fulfill all its obligations,” President and Chairman of VTB Bank Management Board Andrey Kostin said.

“We are grateful to VTB for its support. This restructuring will enable the company to service its debt even in these times that are difficult for the global commodity market. Mechel will do all it can to fulfill its obligations in compliance with the agreements we have reached and will continue the development of our Far East projects,” Chairman of Mechel OAO’s Board of Directors Igor Zyuzin said.