Mechel Reveals Restructuring Of Loan With Sberbank

Mechel OAO (NYSE: MTL) disclosed it struck a deal with Sberbank for restructuring of loan for $427 million or about 30 billion rubles. The company indicated the court has also given its approval of settlements.

Mechel Group's enterprises reached a settlement with Sberbank on restructuring obligations. The settlement in respect of the debt of Chelyabinsk Metallurgical Plant PAO for 17 billion rubles would be completed shortly as the court is due to approve a prior signed agreement.

The company stated the settlements, as well as the loan agreements set the grace period until April 2017 and loan maturity in April 2020 to be paid in monthly installments. Aside from that, there was a postponement of payment of maximum of 40 percent interest payments.

Mechel OAO said that in order to complete restructuring, it should repay part of its debt to Sberbank and Sberbank Leasing, amounting to 2.8 billion rubles.

On Monday, shares traded higher by 0.4 percent.