Severstal is interested in Mechel’s assets

The Government has agreed on two options for the salvation of Mechel, the presidential aide Andrei Belousov stated. According to the official, it is the possible entry of the creditor banks in the company’s capital or the salvation with participation of VEB. In the case of the main shareholder of Mechel Igor Zyuzin (owns 67.42%) refuses all the options, the company will be bankrupted.

According to a first variant, Gazprombank, Sberbank and VTB will give 180 billion rubles to VEB and it will use the money to buy convertible bonds of Mechel.

The second option is the Mechel’s debt conversion (in May it was $8.3 billion) in its shares. In this case, an additional issue of 5.2 billion shares is necessary. As a result of the conversion, the main creditors of Mechel - Gazprombank ($2.3 billion), VTB Bank ($1.8 billion) and Sberbank ($1.3 billion) will receive 40%, 31% and 22% respectively, and the Zyuzin’s stake will be reduced to 5%.