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Mechel in Discussions with Lenders
03/30/2012 - Mechel OAO has commenced discussions with its lenders seeking waivers and amendments to certain credit facilities.
Mechel OAO has commenced discussions with its lenders seeking waivers and amendments to certain credit facilities.
As a result of prevailing market conditions and a corresponding decline in market prices for its products, the company expects to breach financial covenants in these credit facilities for the year ended December 31, 2011.
Mechel has hired financial and other advisors and is currently in discussions with its lenders to seek relevant waivers and amendments of these credit facilities. Mechel says it is confident about the positive outcome of these discussions, but that no assurance can be given regarding whether, or on what terms, it will be able to secure such waivers and amendments.
Mechel is one of the leading Russian mining and metals companies. Its business includes four segments: mining, steel, ferroalloy and power. The company unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Its products are marketed domestically and internationally.
