MOSCOW, July 15, 2014 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, reports extending the maturity of the loans granted by VTB Bank earlier to Southern Kuzbass Coal Company OAO and Yakutugol Holding Company OAO, totaling 15.8 billion rubles.
Mechel Group's Southern Kuzbass Coal Company OAO and Yakutugol Holding Company OAO signed agreements with VTB Bank on extending the maturity of the loans granted earlier totaling 15.8 billion rubles. According to the new schedule, payment on the loans will begin in April 2015 with the final payment to be made in 2018.
By signing these agreements, Mechel completed restructuring of its loans from VTB Bank as part of agreements reached in April. The sum of all extended loans totaled 33.8 billion rubles, including 18.6 billion rubles for 2014, 6.4 billion rubles for 2015 and 8.8 billion rubles for 2016.
"Mechel has all the necessary basis for successful development in the medium term. Today, Mechel Group's top priority is stabilizing its financial situation. This refinancing agreement with VTB Bank is yet another step in this direction," Mechel OAO's Chief Financial Officer Andrey Slivchenko said.
Mechel is an international mining and steel company which employs over 70,000 people. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
CONTACT: Mechel OAO Ekaterina Videman Tel: + 7 495 221 88 88 firstname.lastname@example.org