Mechel OJSC got enough votes from its minority shareholders to restructure most of its debt in the second attempt as the Russian steel and coal producer seeks to weather a slump in commodity prices.
"We are very grateful to our minority shareholders who voted in favor of Mechel’s debt restructuring,” Chief Executive Officer Oleg Korzhov said in the statement. “We received a lot of letters and telephone calls with words of support."
The company has been trying to alter its borrowing terms since 2014 as coal and steel prices touched multi-year lows. It reached an agreement with Sberbank PJSC in April for debt restructuring after Gazprombank and VTB Bank reached similar deals last year. In total, that represents $4 billion of debt.
Mechel is also seeking bondholders’ agreement to restructure the debt. It will also need to agree on restructuring with international lenders for another $1 billion.