Mechel Shares Jump to Highest in 3 Months on Debt Restructuring

  • Russia's largest coking coal producer issues $5 billion terms
  • Shareholders scheduled to vote on borrowing plan on March 4

Mechel OJSC shares jumped to the highest in three months as Russia’s largest coking coal producer published the terms of a $5 billion debt restructuring with major lenders.

Mechel advanced as much as 9.1 percent to 69.79 rubles, its highest level since Oct. 30, and was up 5 percent at 67.16 rubles by 11:47 a.m. in Moscow.

“I am glad to tell you that we have reached an agreement with our major lenders on restructuring,” Igor Zyuzin, the company’s owner, said in a statement.

The company has been trying to alter its terms of borrowing since 2014 following a slump in coal prices. Sberbank, owed about $1.3 billion by the miner, was the only major lender that hadn’t yet approved a restructuring for the producer. VTB agreed to changes in September after Gazprombank altered the terms on $2 billion of Mechel’s debt in August.

Mechel published late on Thursday the terms of the restructuring, with shareholders due to vote on the plan on March 4. The company needs at least half of its minority stockholders to agree on the terms. A syndicate of international lenders, owed about $1 billion, also agreed to restructure its debt, the company said.

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