Breaking News

Merck KGaA, Maker of Erbitux Cancer Drug, to Acquire Sigma-Aldrich for $17 Billion
Tweet TWEET

Mechel Agreed on Covenant Holidays With VTB Bank

Mechel Agreed on Covenant Holidays With VTB Bank

MOSCOW, Dec. 4, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, announces reaching 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 OAO'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," Mechel OAO'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.

Mechel is an international mining and steel company which employs over 80,000
people. Its products are marketed in Europe, Asia, North and South America,
Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled
products, ferroalloys, heat and electric power. All of its enterprises work in
a single production chain, from raw materials to high value-added products.

Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you
to the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
"Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in
our Form 20-F, that could cause the actual results to differ materially from
those contained in our projections or forward-looking statements, including,
among others, the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of competitive
pricing, the ability to obtain necessary regulatory approvals and licenses,
the impact of developments in the Russian economic, political and legal
environment, volatility in stock markets or in the price of our shares or
ADRs, financial risk management and the impact of general business and global
economic conditions.

CONTACT: Mechel OAO
         Ekaterina Videman
         Tel: +7 495 221-88-88
         Ekaterina.Videman@mechel.com

Mechel OAO Logo
 
Press spacebar to pause and continue. Press esc to stop.