Mechel Soars as VTB Says Russian Coalmaker May Avoid Bankruptcy
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OAO Mechel surged the most in six weeks after VTB Group’s Chief Executive Officer Andrey Kostin said Russia’s largest coking coal producer may still avoid bankruptcy.
Mechel shares jumped as much as 27 percent to 89.20 rubles in Moscow after Kostin said he was open to a resolution with the mining company, which has more than $6 billion in total debt mostly to state-controlled VTB, OAO Sberbank and OAO Gazprombank. VTB, Russia’s second-biggest lender, plans to file a bankruptcy claim against Mechel, according to an official statement published in Kommersant newspaper last week.