Russia 's Mechel has sealed a debt restructuring agreement with VTB Bank , worth RUB 70bn ($ 6.8bn ). This will allow VTB to cut costs on loan-loss provisions for Mechel 's debt at a time when the bank's profits have slumped, due to an economic downturn and Western sanctions. The indebted coal and steel producer has spent last week in talks with its 67,000 main creditors, Mechel , Sberbank and VTB over a $ 6.8bn debt restructuring plan. As we noted last week , Gazprombank is still in talks with Sberbank over a separate debt restructure.
Russia's Mechel has sealed a debt restructuring agreement with VTB Bank, worth RUB 70bn ($1bn). This will allow VTB to cut costs on loan-loss provisions for Mechel's debt at a time when the bank's profits have slumped, due to an economic downturn and Western sanctions. The indebted coal and steel producer has spent the year in talks with its three main creditors, Gazprombank, Sberbank and VTB over a $6.8bn debt restructuring plan. As we noted last week, Mechel is still in talks with Sberbank over a separate debt restructure.