Russia's Mechel gets covenant holidays on $1.8 billion credit lines

By Caroline Salls

Pittsburgh, Dec. 4 - Mechel OAO reached an agreement on covenant holidays through the end of 2014 on $1.8 billion of bilateral credit lines from VTB Bank, according to a 6-K filed Wednesday with the Securities and Exchange Commission.

"Covenant holidays provided by VTB are an important step forward in our debt optimization process," Mechel chief financial officer Stanislav Ploschenko said in a company news release.

VTB Bank management board first deputy president and chairman Yuri Soloviev said in the release that "we see and approve the potential of [the company's] current asset restructuring program and are willing to offer VTB's support to Mechel."

Mechel is a Moscow-based mining and metals company.

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