Mechel's net debt not to alter in 2016, extension being discussed
MOSCOW. Dec 16 (Interfax) - Mechel's net debt will not alter in 2016, the coal and steel group's CEO, Oleg Korzhov, said on a conference call.
"The debt is likely to be the same, were in talks with banks to extend the deadline for debt repayments," he said.
Mechel said in a presentation that its debt was $6.178 billion as of December 10. It has fallen 4.3% in the space of a month due to currency devaluation. Net debt was $6.454 billion as of September 2015, the company said in a financial report to US GAAP.
The debt structure altered slightly: now, 68% is owing to state-owned banks compared with 66% previously; 24% to foreign banks (23%); and 7% to other lenders (5%). The debt currencies have also changed a little, with 58% denominated in dollars (59%), 36% in rubles (35%) and 6% in euros (unchanged.).
Shareholders in Mechel will vote on deals with major creditors on March 4. Mechel has said it has scheduled the meeting with approval of interested-party transactions with VTB , Gazprombank , Sberbank and a syndicate of banks on the agenda. The shareholders will also elect a new board of directors and approve a new charter at the meeting.
A company representative told Interfax later that Mechel was planning to approve debt restructuring agreements with banks on March 4. "Talks with Sberbank on restructuring the company's debt are ongoing, the company said. Sberbank also told Interfax that talks with Mechel were ongoing. "We are in the process of discussion, but a final agreement still hasn't yet been reached," the bank's press service said.
Mechel's Korzhov said on December 16 that the company hoped to sign a restructuring deal with Sberbank soon.
"We've done quite a lot of productive work with Sberbank to agree on the terms for restructuring loan debt. We're now in the home strait, as I've already said. We've agreed all the terms for amicable agreements, and we've now agreed the whole text for the whole credit documentation. So soon, we plan to sign them both. We plan to carry on, to continue working in the framework of signed credit agreements, " he said.
