* Mechel seeks to refinance its multi-billion debt
* Co due to repay $2.7 bln in 2013 as of Sept. 1
MOSCOW Dec 3 Debt-laden Russian mining and
steel firm Mechel is in talks with banks to refinance
part of its multi-billion debt, a company spokesman said on
"Mechel confirms that it is in talks with banks to refinance
its current syndicated loan," a company spokesman said, without
giving any details.
New York-listed Mechel, carrying net debts of $9.4 billion
as of Sept. 1, put up its non-core assets for sale earlier this
year in an attempt to raise around $4 billion to cut its debt
leverage. It has yet to make any major sales.
Russian news agency Interfax reported earlier, quoting two
sources familiar with the talks, that Mechel was seeking to
attract $2.7 billion from a syndicate of up to six banks,
including Russia's largest state lender Sberbank.
A spokesperson for Sberbank could not be reached for
comment. Mechel's spokesman denied the reported $2.7 billion
amount of possible borrowing, which coincides with the total
volume of company debts falling due for repayment in 2013.
Mechel, controlled by billionaire Igor Zyuzin, like other
Russian steelmakers, invested heavily to expand until the 2008
financial crisis hit steel demand and forced them to borrow to
Mechel recently won an extension on the repayment of a 13
billion rouble ($420 million) loan from December to next July,
but has to pay an interest rate of 13 percent - almost double
the previous amount.
The company posted a second-quarter net loss of $823 million
because of sagging markets and foreign exchange losses. It made
a $192 million net profit in the 2011 period.
Mechel last month halted its steel mills in Ukraine and
Romania amid rising production costs and weak demand.