10 Nov 2009 17:33

TMK to get state guarantees for loan restructuring

MOSCOW. Nov 10 (Interfax) - TMK , one of the world's top-three oil and gas industry pipe producers, will receive government guarantees to restructure its loan portfolio, Deputy Industry and Trade Minister Andrei Dementyev told a press conference during the Metal Expo exhibition in Moscow.

"Guarantees are being issued to restructure the loan portfolio. They were approved by the commission chaired by [Deputy Economic Development Minister Oleg] Savelyev and the Finance Ministry is now processing them," Dementyev said, without naming a figure.

TMK was not immediately available for comment.

TMK's net debt totaled $3.56 billion at the end of the first half. In the June-September period the company raised a seven-year loan of 5.7 billion rubles from Sberbank Russia . It had also managed to refinance a large part of short-term debt as of October 1. The company had $286 million in cash at the end of the first half.

TMK sold 3.227 million tonnes of pipe in 2008. The company has production facilities in Russia, the U.S., Romania and Kazakhstan. Board chairman Dmitry Pumpyansky is the chief beneficiary. The free float is 23%.