Russia's Mechel Turns to Bondholders After $2 Billion Loan Deal
- Company offers to amortize 2020 ruble bonds over 4 years
- Investors to vote on new debt terms by end of September
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Mechel OJSC, Russia’s largest coking coal miner, is asking bondholders to restructure ruble bonds after the debt-burdened company struck a deal this week to change terms on about $2 billion of bank loans.
The Moscow-based miner is seeking permission to amortize its 6 billion rubles ($92 million) of outstanding 2020 bonds over four years, according to Gazprombank JSC, which is one of the restructuring agents. Under the plan, Mechel will repay a part of the principal every six months, starting in 2017.