Mechel Signs Debt Restructuring Deal with Sberbank
Russian coal and steel producer Mechel said on Monday it had agreed a debt restructuring deal with the country's biggest bank Sberbank totalling 30 billion roubles ($446 million) and $427 million. The mining company, controlled by businessman Igor Zyuzin, borrowed heavily before Russia's economic crisis and has struggled to keep up repayments as demand for its products weakened alongside tumbling coal and steel prices.
Russian Officials at Odds over Mechel Bailout
The head of Russia's state development bank has ruled out taking part in a rescue of ailing miner Mechel, possibly making a rival government-promoted debt-for-equity deal involving creditors a more likely option to save the company. Russia has been looking into ways to help Mechel, a coal-to-steel group with $8.6 billion in debt and 70,000 workers…
Russia Considers $5 bln rescue for Mechel
Mechel may issue convertible bonds and use proceeds to pay off a part of its debt. Some scenarios assume partial dilution of current owners. Russia is considering a $5 billion bail-out of Mechel, the country's largest producer of steelmaking coal, a government official said on Thursday, a rescue deal that could reduce the stake of controlling shareholder businessman Igor Zyuzin.
