Process of restructuring Mechel debt to Sberbank proceeding 'normally' - Gref
MOSCOW. Nov 14 (Interfax) - The process of restructuring Mechel debt to Sberbank of Russia is proceeding normally, Sberbank CEO German Gref said during a presentation of the bank's new strategy.
"Their liabilities have been seriously restructured. They have two big business segments: coal and steel. The coal segment is doing better. A large part of the liabilities were reassigned healthier assets. A normal process for recovery of our debt and consequently a restructuring of the debt is underway," he said.
Gref said he does not understand why Mechel share prices collapsed on November 13. "Quite honestly, I do not understand the causes for now," he said.
Gref said he contacted Mechel's chief when he saw the company's share prices tumbling on Wednesday. "He found out about the price drop from me. He said nothing was happening that we did not know about," Gref said.
Obviously, Mechel is working hard to put things right. "Of course something is happening, of course. The company has enormous difficulties and is in an absolutely difficult period of its development. Do I see anything dramatic? Honestly, I don't see anything dramatic. Will the company emerge from the situation? It may. First and foremost that depends on the effectiveness of company management and how the situation in the metals market develops," he said.
A small portion of Mechel's debt to Sberbank is unsecured, Gref said. "There is a small piece of unsecured debt among Mechel's paper, not very big, and we are managing it closely," Gref said.
