Russian Industry and Trade Minister Denis Manturov supports returning indebted miner Mechel to financial health within the framework of bankruptcy law or by creating a managing company, RIA Novosti reported Thursday.
State-owned development bank Vneshekonombank, or VEB, said Wednesday it would not take part in a bailout of Mechel, extinguishing hopes for a convertible bond scheme that was seen as its most likely lifeline.
"We need to talk about financial recovery either via bankruptcy law, or by strengthening a managing company, which should take the risk on itself and the responsibility to take the company out of crisis," Manturov was quoted as saying in the Urals city of Yekaterinburg.
"But the tasks and the commitments are huge and I cannot say who is willing to take it yet. Therefore, we will continue to work on it," Manturov added. He did not give any further details.
The loss-making coal to steel group, hit by weak prices for its products, is in critical need of government support as its 2013 core earnings were lower than loan interest payments.
With debts of $8.6 billion, Mechel, co-owned by businessman Igor Zyuzin, has already gone through several debt restructurings with creditor banks.
See also:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
