This restructuring will enable the company to service its debt even in these times that are difficult for the global commodity market. Russia 's government 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 creditors 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 .
Russia 's government 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 creditors 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 .