OREANDA-NEWS. April 19, 2016. Mechel PAO (MICEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports the signing and court approval of settlements restructuring Mechel’s debt to Sberbank totaling approximately 30 billion rubles and 427 million US dollars.

Mechel Group’s enterprises – Chelyabinsk Metallurgical Plant PAO, Southern Kuzbass Coal Company PAO, Mechel Trading AG, Yakutugol Holding Company OAO, Bratsk Ferroalloys Plant OOO, Korshunov Mining Plant OAO and Izhstal OAO – reached a settlement with Sberbank on restructuring obligations totaling 13 billion rubles and 427 million US dollars. The settlement regarding the debt of Chelyabinsk Metallurgical Plant PAO, totaling 17 billion rubles, is due to be completed shortly as the court is due to approve a prior signed agreement.

The settlements and loan agreements set the grace period until April 2017 and loan maturity in April 2020 to be paid in monthly installments, and a postponement of payment of up to 40% interest payments. The main debt’s grace period may be extended until January 2020 with loan maturity until April 2022 if VTB Bank agrees to similar conditions and if other conditions are met in 2016.

In order to complete restructuring, Mechel Group must repay part of its indebtedness to Sberbank and Sberbank Leasing, totaling 2.8 billion rubles.

The court also approved settlements with Cyprus-based Viamelion Consultants Limited, part of Gazprombank (AO) group, which has become legal successor to Sberbank regarding Southern Kuzbass Coal Company PAO’s debt of 423 million dollars and 3.1 billion rubles.