Russian steel and coking coal producer Mechel has agreed easier loan terms with its creditors, the company said on Friday.
The company started talks with over 25 leading international and Russian banks to revize some loan terms “due to uncertain market conditions and a period of decline in market prices for its products” on March 29, 2012 and completed them on April 26.
“Gaining approval from more than 25 leading international and Russian banks within such a limited time frame is proof of their trust in Mechel as a quality and reliable borrower as well as their confidence in our company’s strategic choices,” Mechel CFO Stanislav Ploschenko was quoted in a statement as saying.
“The new levels of covenants will enable us to continue our operational and investment activity regardless of volatility on the global financial and commodity markets,” he added.
Mechel’s overall debt amounted to $9.5 billion as of September 30, 2011, while net debt stood at $9 billion.