Moscow, Russia – April 18, 2016 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports the signing and court approval of amicable settlement agreements for Mechel’s debt restructuring to Sberbank totaling approximately 30 billion rubles and 427 million US dollars.

Mechel Group’s companies – Chelyabinsk Metallurgical Plant PAO, Southern Kuzbass Coal Company PAO, Mechel Trading AG, Yakutugol Holding Company AO, Bratsk Ferroalloys Plant OOO, Korshunov Mining Plant OAO and Izhstal OAO – signed agreements with Sberbank on restructuring of their obligations totaling 13 billion rubles and 427 million US dollars. Restructuring of Chelyabinsk Metallurgical Plant PAO debt, totaling 17 billion rubles, shall be finalized shortly following the court approval of signed amicable settlement agreements.

Amicable settlement agreements and loan agreements set the grace period until April 2017 with monthly principal repayments starting from April 2017 till April 2020, and capitalization of up to 40% interest payments. 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 subsequent are fulfilled in 2016.

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

The court also approved amicable settlement agreements with Viamelion Consultants Limited (Cyprus), 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.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com