1 Min Read
MOSCOW, Dec 5 (Reuters) - Debt-laden Russian mining and steel firm Mechel has secured the restructuring of $1 billion syndicated loan, the company said on Wednesday.
The loan, which was in a monthly repayment phase, will now benefit from a grace period of 12 months, followed by repayment in equal monthly installments until August 2015, it added.
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.
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 support operations. (Writing by Polina Devitt)