EquityStory.RS, LLC-News: PJSC Mechel / Key word(s): AGM/EGM
PJSC Mechel: Address to shareholders
2020-06-09 / 11:00 MSK
The issuer is solely responsible for the content of this announcement.
Address to shareholders
Dear shareholders,
In April 2020, our company's management was able to get the approval of our
major lenders who hold 88% of our debt, for the conditions of a 10-year
restructuring deal. This was indisputably vital for us, as even in 2017, as
our previous debt restructuring with state-owned banks came into force,
putting off payments on the main body of debt until 2020, we understood that
we will have to return to the negotiating table as soon as the debt maturity
deadline came near, and we did not conceal that understanding. Over these
three years, our financial payments totaled 167.4 billion rubles. We wanted
to come to our new restructuring deal prepared as best we could, but the
heavy financial load which prevented us from sufficient investment into
production, as well as declining prices for our key product - coking coal -
prompted us to rethink our strategy. As it became clear that we will not be
able to bring in additional financing to develop our Elga project any time
soon, we decided to sell Elgaugol and the Ulak-Elga railway and use these
funds toward debt repayment. This helped us to significantly decrease our
debt to VTB Bank and Gazprombank and make a restructuring deal with
conditions acceptable for the Group.
As per these new agreements, the debt maturity is extended by seven years,
with the option of extending it for another three years if the company
upholds its payment schedule. Loan collaterals and interest rates remained
the same.
This restructuring is vital for the company's future, it will improve
Mechel's financial situation, ensuring debt repayment and enabling us to
invest in developing our current projects, which means increased shareholder
value.
In order to complete the restructuring process, we need the majority of our
minority shareholders to approve the loan and collateral transactions.
Unless those are approved, the restructuring will cease to be in force.
On behalf of Mechel PAO's Board of Directors and Management Board, we call
on you to vote in favor of the restructuring conditions that will be
presented for approval on the annual general shareholder meeting to be held
on June 30.
The company's financial stability and growth of shareholder value is now in
your hands.
Every shareholder vote counts!
Respectfully,
Chairman of the Board of Directors Igor Zyuzin
Chief Executive Officer, Head of Management Board Oleg Korzhov
2020-06-09 MSK Dissemination of a Corporate News, transmitted by
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: PJSC Mechel
1 Krasnoarmeyskaya Street, Moscow, Russia
127006 Moscow
Russia
Phone: +7 (495) 221-88-88
Fax: +7 (495) 221-88-00
E-mail: press@mechel.com
Internet: www.mechel.ru/
ISIN: US5838406081, RU000A0DKXV5
WKN: A2AC1G
Listed: Foreign Exchange(s) Moscow, NYSE
EQS News ID: 1065735
End of News EquityStory.RS, LLC News Service
1065735 2020-06-09 MSK
(END) Dow Jones Newswires
June 09, 2020 04:00 ET (08:00 GMT)
