Press review: Manchester terror attack's call to arms and US' push for Assad's ousterPress Review May 24, 13:00
Russian Navy to get seven advanced nuclear submarines by 2021Military & Defense May 24, 12:44
Defense Ministry reports on Russian army's 2016 picksMilitary & Defense May 24, 11:32
Defense minister vows causes of Tu-154 crash near Sochi will be disclosed soonWorld May 24, 11:20
Russia, US discuss Syrian conflict in round-the-clock mode — defense ministerRussian Politics & Diplomacy May 24, 11:01
Russia ready to help countries affected by terrorism in their probe — security chiefRussian Politics & Diplomacy May 24, 10:39
Defense chief names strategically important regions for RussiaRussian Politics & Diplomacy May 24, 10:29
Russian defense contractor develops domestic air traffic control systemMilitary & Defense May 24, 9:45
New radar system enters combat duty in Russia’s Far EastMilitary & Defense May 24, 9:24
On Thursday, the interest payments of loans granted by Russia’s top bank Sberbank, VTB Bank and Gazprombank to Mechel came due, but the payments were never made.
The banks have demanded the company convert debt into shares, decreasing a 67.42% stake of Igor Zyuzin, the board of directors’ chairman, to minority and changing the company’s management board.
Mechel’s net debt stands at $8.3 billion, including a $2.3 billion debt to Gazprombank, $1.8 billion to VTB and $1.3 billion to Sberbank. The company has been in debt restructuring talks for six months.
VTB is not satisfied with the company’s restructuring plan as “the current debt burden is beyond (Mechel’s) strength,” VTB CEO Anrei Kostin told daily Izvestia.
The non-payment to VTM may be regarded as the first stem to Mechel’s bankruptcy, according to Izvestia.
Mechel’s shares fell by 13% at Friday’s opening, the Moscow Exchange’s data showed.