STAVROPOL, Russia, June 19 The Russian
government is in talks with state banks on providing 180 billion
roubles ($5.21 billion) as part of a restructuring package for
indebted coal producer and steelmaker Mechel, Economy
Minister Alexei Ulyukayev said on Thursday.
The government is considering a restructuring scheme for
Mechel that would involve issuing bonds convertible into shares,
which could be purchased by state development bank
Vnesheconombank, or VEB, Ulyukayev told journalists.
"The main thing being discussed is a bridge loan and then,
the transfer of rights to demand collateral to VEB. It is
possible that these rights will come through concrete
convertible bonds," Ulyukayev said.
This move would allow Mechel to pay off its debt to three
state banks, Sberbank, VTB and Gazprombank,
said Ulyukayev, a member of Vnesheconombank's board of
Mechel's debt stood at $8.6 billion at the end of April.
($1 = 34.5218 Russian Roubles)
(Reporting by Polina Devitt; Writing by Polina Devitt and Lidia
Kelly, editing by Elizabeth Piper)