Norilsk Nickel, TMK Pipes

Metallurgy-2014: under “star” of Mechel

The outgoing year in metallurgy will be remembered by everyone, first of all, due to events with Mechel. In 2014, the most indebted company in the industry lost most of its capitalization. It was threatened with bankruptcy, default, was asked to sell assets, restructure its debt and convert it into shares. It was threatened with the dismissing of its general director and principal owner of the company Igor Zyuzin from its management - but there are still no specifics on the future of Mechel.
The first problems of Mechel were found at the end of February, when its shares "went" down for unknown reasons, although some analysts suspected that this was due to its debts. The manipulation with the shares was attributed to speculators, and the Central Bank undertook to investigate. But no one then imagined that everything would go so far.
But the company also had positive aspects in the current year, in particular, the sale of assets, and the fall of the ruble allowed it to significantly reduce its debt.

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Credited metallurgical companies UC Rusal, Mechel and Evraz apply to Medvedev to help – they need state guarantees for restricting of bank debts

Today the most credited Russian metallurgical companies – UC Rusal, Mechel and Evraz will meet Dmitry Medvedev and will ask him to help. As the Vedomosti has got to know, on Monday the Prime Minister Dmitry Medvedev will receive metallurgists and their creditors in Gorki-9 to make a decision how to restructure the industry and stimulate its development. The Minister of Industry Denis Manturov and the Minister of Economic Development Alexei Ulyukaev will be speakers. A representative of the Ministry of Economic Development confirmed the participation of Ulyukaev and the Ministry of Industry and Trade declined to comment.
The draft decision of this meeting says that the Ministry of Economic Development, Ministry of Finance and the Ministry of Industry and Trade must prepare proposals on state guarantees to refinance the debt of metallurgical companies and to fund a part of their costs for payment of interests from the budget before December 23 of 2013 (in 2012, Mechel paid $669 million for loan service, UC Rusal - $610 million and Evraz - $645 million). The Ministry of Economic Development’s representative fears that the interests funding can lead to increase of the credit burden of metallurgical companies, because they will be able to afford new loans, so this is a subject for discussion.

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