Mechel agreed on covenant holidays with VTB

Mechel reached agreement on covenant holidays on bilateral credit lines from VTB Bank amounting to USD 1.8 billion until the end of 2014.

“This agreement once again demonstrates that VTB is one of our most longstanding and credible partners. We are thankful to VTB for many years of fruitful cooperation, which has always contributed to Mechel’s dynamic development against a backdrop of the volatility in international commodity markets. Covenant holidays provided by VTB are an important step forward in our debt optimisation process,” Meche’s Chief Financial Officer Stanislav Ploschenko stated.

“Mechel has proved itself, time and again, as a vibrant and resilient company whatever the market situation. We see and approve the potential of its current asset restructuring program and are willing to offer VTB’s support to Mechel, confident that this new step will further consolidate our mutually beneficial partnership,” First Deputy President and Chairman of VTB Bank Management Board Yuri Soloviev noted.