VTB Bank on 9 September signed an agreement with Mechel Group companies to restructure approximately RUB 70 bln of debt owed to the Bank by OJSC Mechel and its subsidiaries OJSC Yuzhny Kuzbass, OJSC Yakutugol and PJSC ChMK.
Under the terms of the agreement, VTB has extended the grace period for repayment of the principal till April 2017 with monthly payments thereafter until April 2020.
President and Chairman of the Management Board of VTB Bank Andrey Kostin said: "I am pleased that these complex negotiations with Mechel have led to a successful conclusion. I hope that the new terms of these loans will enable Mechel, a
Chairman of the Board of Directors of OJSC Mechel Igor Zyuzin said: "We are grateful to VTB Bank for its support. This restructuring will enable the company to continue servicing its debt even in the current challenging situation facing the global commodities market. Mechel will do everything it can to fulfill its obligations in accordance with the agreements we have reached while continue to develop its projects in Russia’s Far East."