OREANDA-NEWS. January 11, 2012. Steel pipe and railway wheel company Interpipe has entered into a restructuring agreement of its debt portfolio of USD 887 million. Completion of the  restructuring will allow the Company to focus on the development of new markets and modernization of its production assets and in particular, commissioning of the largest electric steel melting complex in Eastern Europe, Dneprosteel.

The restructuring terms provide for the repayment for the principal amount of restructured debt by 2017. As a part of the restructuring the lending banks have agreed to provide additional funding in the amount of USD136 million to support the CAPEX of Interpipe. In addition, the shareholders of Interpipe have made an injection into the Company’s  capital in the amount of USD 65 million. The Company will also have freedom to attract additional working capital loan facilities.

Oleksandr Cherniavskyi, the Chief Financial Officer of Interpipe commented: “The completion of the restructuring demonstrates the confidence that international financial institutions have in Interpipe and its shareholders. It also confirms that Interpipe remains as a reliable corporate player with a decent credit record and a reputation as a responsible borrower.”

The revised restructuring repayment  schedule and additional working capital funding, will improve  Interpipe’s financial position and allow the company to enter into the testing and commissioning phase of Dneprosteel – the biggest electric arc furnace facility in Eastern Europe. The taking-over of which is currently scheduled for March 2012.

As Alexander Kirichko, the Chief Executive Officer of Interpipe has said: “The launch of new mill will reduce our dependency from foreign suppliers and provide the company with its own steel billets, which will be used in the production of 80% of seamless pipes and 100% of railway wheels. With the launch of Dneprosteel, the Company will increase its vertically-integrated structure from scrap processing to steel production, manufacturing pipes and railway wheels to customer service in key markets.”

Interpipe’s development priorities for forthcoming years include increasing its presence in North America and the Middle East.