Mechel pays its debts by selling its assets

The credit burden of Mechel dictates its living conditions.In 2014, it will continue to actively sell non-core assets and restructure its loan portfolio. In the near future, the company plans to begin negotiations for sale of package to the amount of up to $1 billion in the Elga coal project, Mechel’s senior vice president for finance Stanislav Ploschenko told journalists.

At the beginning of this year, the company held a series of offers on bonds, bought them to the total amount of 13.68 billion rubles. A part of the funds from the sale of two ferroalloy assets of Mechel was used for this.

In addition, Mechel has agreed with holders of ruble bonds for providing loans to repurchase these securities. Loans were opened in addition to the existing credit lines. A part of the bondholders didn’t submit their securities for redemption, because they had an agreement with Mechel, said Ploschenko.

The main thing is to reduce the debt

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