Severstal Gets Kremlin OK to Pay Debt, Says Citi May Block Transaction
- Company says it has permission to pay creditors in dollars
- Firm says transfer agent may refuse to process coupon payment
An electric arc furnace at a steel mill, operated by Severstal, in Cherepovets, Russia.
Source: Andrey Rudakov/BloombergThis article is for subscribers only.
Russian steel and mining company Severstal has received permission from Moscow to make a $12.6 million interest payment due Wednesday on its dollar bonds, but the firm warned that paying and transfer agent Citigroup Inc. may refrain from processing the transaction.
“At the moment we certify that there are no obstacles from Russian law side for the company to make the payment,” Severstal said in a Wednesday filing. But, it added, “given the recent developments around the company, we have grounds to believe that” Citigroup won’t process the coupon payment.